Question
Your best friend will lend you $5,000 if you agree to pay back $5,540 in three years. Alternately, you can borrow from the bank at
Your best friend will lend you $5,000 if you agree to pay back $5,540 in three years. Alternately, you can borrow from the bank at 3.36% interest. Should you borrow from your best friend or the bank?
| Borrow from the bank at 3.36% interest as it is cheapest loan. | ||
| Borrow from your best friend interest as it is the cheapest loan. | ||
| Borrow from either one as the interest rate is the same. | ||
| Not enough information to work the problem. |
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Chains Of Finance How Investment Management Is Shaped
Authors: Diane-Laure Arjalies, Philip Grant, Iain Hardie, Donald MacKenzie, Ekaterina Svetlova
1st Edition
0198802943, 978-0198802945
