You want to borrow $250,000 for 1 year from your bank and are given the following 2
Question:
1) Pay $35,000 per month for 12 months starting at the end of the 1st month.
2) Take a discount loan at the rate of 8% per year and pay the entire face value of the loan at the end of 12 months.
Face Value
Face value is a financial term used to describe the nominal or dollar value of a security, as stated by its issuer. For stocks, the face value is the original cost of the stock, as listed on the certificate. For bonds, it is the amount paid to the...
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Calculate the EAR under each option and indicate your choice with an explanation Option 1 i...View the full answer
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