How many dollars in interest will they pay

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Reference no: EM13157082

A new piece of equipment costing $340,000 is required. A local bank is offering a low interest rate of 5.000% compounded daily. The deal is we would pay nothing for 4 yrs and at that time pay accrued interest and principal off in one payment. Another bank is offering 5.4% compounded semiannually with the same payoff terms. Which bank is giving the best deal?

If they go with that bank, how many dollars in interest will they pay?

Reference no: EM13157082

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