You need a loan in the amount of $10,000 with a repayment period of 5 years. You did some market research, and it seems that you have two options as follows: Pay $3,000 per year at BMO or Pay 15,000at the end of the 5-year period at CIBC. What option is better. The interest/discount rate is 10% at both banks.
You need a loan in the amount of $10,000 with a repayment period of 5 years. You did some market research, and it seems that you have two options as follows: Pay $3,000 per year at BMO or Pay 15,000at the end of the 5-year period at CIBC. What option is better. The interest/discount rate is 10% at both banks.
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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You need a loan in the amount of $10,000 with a repayment period of 5 years. You did some
Pay $3,000 per year at BMO or
Pay 15,000at the end of the 5-year period at CIBC.
What option is better. The interest/discount rate is 10% at both banks.
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