Due to this pandemic, your mother is having a hard time paying your bills, so she decided to apPply for a loan. Can you help your mother pick which bank will she choose to have the loan? BANK A BANK B - maximum of Php 500,000 loan - maxímum of Php 500,000 loan - offers 6% interest compounded semi- annually - offers 4% compounded quarterly - payable for 3 years - payable for 3 years Which bank will you choose? Explain your answer.
Due to this pandemic, your mother is having a hard time paying your bills, so she decided to apPply for a loan. Can you help your mother pick which bank will she choose to have the loan? BANK A BANK B - maximum of Php 500,000 loan - maxímum of Php 500,000 loan - offers 6% interest compounded semi- annually - offers 4% compounded quarterly - payable for 3 years - payable for 3 years Which bank will you choose? Explain your answer.
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
Related questions
Question
Answer the situation. Compute for interest. Show your Complete Solution.
I already provided the answer I just need the Solution and explanation.
Answer:
Bank A because it will yield less interest than bank B.
Transcribed Image Text:Due to this pandemic, your mother is having a hard time paying your bills, so she
decided to apply for a loan. Can you help your mother pick which bank will she
choose to have the loan?
BANK A
BANK B
maximum of Php
500,000 loan
maxímum of Php
500,000 loan
- offers 6% interest
compounded semi-
annually
offers 4%
compounded quarterly
- payable for 3 years
payable for 3 years
Which bank will you choose? Explain your answer.
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