Which alternative is the most attractive

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You have a choice of borrowing money from a finance company at 25 percent compounded quarterly or borrowing money from a bank at 27 percent compounded annually. Which alternative is the most attractive? If you can borrow funds from a finance company at 25% compounded quarterly, the EAR for the loan is what %. If you can borrow funds from a bank at 27% compounded annually, the EAR for the loan is what %? What is the better option?

Reference no: EM131070894

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