Why is the actual cost of borrowing usually lower than the stated rate of interest that the

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Why is the actual cost of borrowing usually lower than the stated rate of interest that the borrower pays to a lender such as a bank? Can you think of a situation where the actual cost of borrowing wouldn't be lower than the stated rate of interest?

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Financial Accounting A Critical Approach

ISBN: 978-1259066528

4th edition

Authors: John Friedlan

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Question Posted: Feb 26, 2015 11:43 AM

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Why is the actual cost of borrowing usually lower than the stated rate of interest that the

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Financial Accounting A Critical Approach

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