(Compound interest with nonannual periods) After examining the various personal loan rates available to you, you find that you can borrow funds from a finance company at an APR of 6 percent compounded weekly or from a bank at an APR of 7 percent compounded quarterly. Which alternative is more attractive? a. If you borrow $100 from a finance company at an APR of 6 percent compounded weekly for 1 year, how much do you need to payoff the loan? (Round to the nearest cent.)
(Compound interest with nonannual periods) After examining the various personal loan rates available to you, you find that you can borrow funds from a finance company at an APR of 6 percent compounded weekly or from a bank at an APR of 7 percent compounded quarterly. Which alternative is more attractive? a. If you borrow $100 from a finance company at an APR of 6 percent compounded weekly for 1 year, how much do you need to payoff the loan? (Round to the nearest cent.)
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:(Compound interest with nonannual periods) After examining the various personal loan rates available to you,
you find that you can borrow funds from a finance company at an APR of 6 percent compounded weekly or
from a bank at an APR of 7 percent compounded quarterly. Which alternative is more attractive?
a. If you borrow $100 from a finance company at an APR of 6 percent compounded weekly for 1 year, how
much do you need to payoff the loan?
(Round to the nearest cent.)
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