Business, 31.03.2020 04:59 Circe7527

(Related to Checkpoint 5.7) (Calculating an EAR) After examining the various personal loan rates available to you, you find that you can borrow funds from a finance company at 12 percent compounded quarterly or from a bank at 13 percent compounded monthly.

Which alternative is more attractive? If you can borrow funds from a finance company at 12 percent compounded quarterly, the EAR for the loan is nothing%. (Round to two decimal places.)
A. The loan from the finance company at 12 % compounded quarterly
B. The loan from the bank at 13 % compounded monthly

If you can borrow funds from a bank at 13 percent compounded monthly, the EAR for the loan is nothing%. (Round to two decimal places.) Based on the findings above, which alternative is more attractive? (Select the best choice below.)
A. The loan from the finance company at 12 % compounded quarterly
B. The loan from the bank at 13 % compounded monthly

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(Related to Checkpoint 5.7) (Calculating an EAR) After examining the various personal loan rates ava...

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