Question
You need to borrow $20,000 to buy a car.Bank A is charging you a stated rate of 4% compounded every month; you must make monthly
You need to borrow $20,000 to buy a car.Bank A is charging you a stated rate of 4% compounded every month; you must make monthly payments for 5 years.Bank B is charging you 3.9% compounded continuously; you also must make monthly payments for 5 years.Which deal do you like better: Bank A's or Bank B's?
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Investment Analysis and Portfolio Management
Authors: Frank K. Reilly, Keith C. Brown, Sanford J. Leeds
11th Edition
1305262999, 1305262997, 035726164X, 978-1305262997
