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Calculating EAR You have a choice of borrowing from a finance company at 23 percent compounded annually or borrowing money from a bank at 25 percent compounded daily. Which alternative is the most attractive.
If you can borrow funds from a finance company at 23 percent compunded annually, the EAR for the loan is ? percent round to two decimals.
If you can borrow funds from a bank at 25 percent compounded daily the EAR for the loan is percent round to two decimals
Based on the findings above which alternative is more attractive?
a. The loan from the finance company at 23% compounded annually
b. The loan from the bank at 25% compounded daily
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