Question
You are looking at three borrowing options. Option A charges 6.015% quoted rate with daily compounding. Option B charges 6.1% simple annual rate received monthly.
You are looking at three borrowing options. Option A charges 6.015% quoted rate with daily compounding. Option B charges 6.1% simple annual rate received monthly. Option C has an effective annual rate of 6.15%. Which one would you choose? Why?
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Parimutuel Applications In Finance New Markets For New Risks
Authors: Ken Baron, Jeffrey Lange
1st Edition
1403939500, 9781403939500
