Nadia needs to borrow $5000 to pay for ocean cruise tickets for her family. She can borrow from a finance company (at 2.77% add-on interest for 4 years) or she can borrow from a credit union (48 monthly payments of $114.58 each). Find the APR (to the nearest 0.01%) for each loan, and decide which one is Nadia's better choice. The APR for the finance company loan is (Type an integer or decimal rounded to the nearest hundredth as needed.)

Nadia needs to borrow $5000 to pay for ocean cruise tickets for her family. She can borrow from a finance company (at 2.77% add-on interest for 4 years) or she can borrow from a credit union (48 monthly payments of $114.58 each). Find the APR (to the nearest 0.01%) for each loan, and decide which one is Nadia's better choice. The APR for the finance company loan is (Type an integer or decimal rounded to the nearest hundredth as needed.)

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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