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You and your friends are planning to put up a business and you will need a capital to start with. Someone informed you about loaning

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You and your friends are planning to put up a business and you will need a capital to start with. Someone informed you about loaning in a bank and got interested in Bank A and Bank B. Which bank will you choose?

1. Construct the amortization schedule of Bank A.

2. Suppose the interest in Bank B is larger than the interest in Bank A by 0.5% and the term is shorter than in Bank A by 1 year. Which bank will give you the highest interest? Why?

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