What would be the cost for Company A

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Question - Company A is currently cash-constrained, and must make a decision about whether to delay paying one of its suppliers, or taking out a loan. They owe the supplier $10,203, and they can borrow the money from Bank B, which has offered to lend the firm $10,203 for 2 months at an APR of 16% (compounded). The loan has a 1.59% loan origination fee. What would be the cost for Company A if they decide to borrow from Bank B?

Reference no: EM133080296

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