Question
You need $10000 for 2 years and you go to your bank asking for a loan. The loan officer gives you the following options: a)
You need $10000 for 2 years and you go to your bank asking for a loan. The loan officer gives you the following options:
a) 12% APR, yearly compounding
b) 11.5% APR, semi-annually compounding
c) 11% APR, monthly compounding Which one would you choose and why?
For the previous question, calculate the total amount of money that you have to pay pack to the bank in each loan payment structure.
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Financial Management Principles And Practice
Authors: Timothy Gallagher
7th Edition
0996095462, 978-0996095464
