What is the best option and how much difference will it make

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A company will borrow $50,000 for new equipment and will repay the loan in 5 years. Financing is available at an annual interest rate of 7% or at a nominal interest rate of 6.75% compounded quarterly. What is the best option and how much difference will it make in the final payoff amount?

Reference no: EM13156088

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What is the best option and how much difference will it make : A company will borrow $50,000 for new equipment and will repay the loan in 5 years. What is the best option and how much difference will it make in the final payoff amount?

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