Question
You wish to borrow $1,500 for 10 years to start a business. You approach different lenders who have the following offers. Which is the best
You wish to borrow $1,500 for 10 years to start a business. You approach different lenders who have the following offers. Which is the best lender to borrow from? All percentage rates are rounded to 6 decimal places. Select one: a. 14.863202% pa APR compounding weekly where there are exactly 52 weeks per year. b. 15.406592% pa APR compounding semi-annually where there are exactly 2 semi-annual periods per year. c. 0.259402% as an effective weekly rate where there are exactly 52 weeks per year. d. 0.040671% as an effective daily rate where there are exactly 365 days per year. e. I'll lend you the $1,500 now if you pay me a single payment of $6,617.15 in 10 years, with no other payments in between.
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