Question
You have a choice of borrowing money from a finance company at 24 percent compounded weekly or borrowing money from a bank at 25 percent
You have a choice of borrowing money from a finance company at 24 percent compounded weekly or borrowing money from a bank at 25 percent compounded semiannually. What is the effective annual rate (EAR) of each loan? Which alternative is the most attractive?
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Focus On Personal Finance
Authors: Jack R. Kapoor, Les R. Dlabay Professor, Robert J. Hughes, Melissa Hart
5th Edition
0077861744, 978-0077861742
