Which alternative is more? attractive

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Reference no: EM131348529

(Calculating an EAR?) You have a choice of borrowing money from a finance company at 23 percent compounded monthly or borrowing money from a bank at 25 percent compounded quarterly. Which alternative is the most? attractive?

If you can borrow funds from a finance company at 23 percent compounded monthlymonthly?, the EAR for the loan is _____?(Round to two decimal? places.)

If you can borrow funds from a bank at 25 percent compounded quarterly?, the EAR for the loan is ______. ?(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 23% compounded monthly

B. The loan from the bank at 25% compounded quarterly.

Reference no: EM131348529

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