What is the interest rate if she borrows from her firm

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Reference no: EM13980813

Anne Morgan wants to borrow $6,000 for a period of four years. She has two choices. Her bank is offering to lend her the amount at 7.25 percent compounded annually. She can also borrow from her firm and will have to repay a total of $8,130.93 at the end of four years. Should Anne go with the bank or the firm, and what is the interest rate if she borrows from her firm?

Entry field with incorrect answer

A. She should borrow from the bank as the bank is charging a lower interest rate than the firm's interest rate of 7.9%.

B. She should borrow from the firm because it is charging a lower interest rate of 6.9%.

C. She should borrow from the firm because it is charging a lower interest rate of 6.5%.

Reference no: EM13980813

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