What is the difference in the effective annual rates

Reference no: EM132065940

Question: PV Inc. needs to arrange financing to replace old equipment. Bank A offers to lend Pv the required funds on a loan where interest is charged monthly, and the quoted rate is 8 percent. Bank B will charge 9 percent, with interest due at the end of the year. What is the difference in the effective annual rates charged by the two banks?

Reference no: EM132065940

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What is the difference in the effective annual rates : PV Inc. needs to arrange financing to replace old equipment. Bank A offers to lend Pv the required funds on a loan where interest is charged monthly.

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