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What would be the cost for company a

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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 $12,245, and they can borrow the money from Bank B, which has offered to lend the firm $12,245 for 1 months at an APR of 13% (compounded). The loan has a 1.54% loan origination fee.

What would be the cost for Company A if they decide to borrow from Bank B?

Reference no: EM133111170

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