John wants to purchase a car but needs $5,000 to do so. His uncle Eswar offers to
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John wants to purchase a car but needs $5,000 to do so. His uncle Eswar offers to loan him the money at 8% compounded yearly. Uncle Shankar offers to loan him the money at 9% simple interest. If both loans are to be paid in a lump sum in 5 years, which loan should John choose?
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Related Book For
Managerial Economics
ISBN: 978-0133020267
7th edition
Authors: Paul Keat, Philip K Young, Steve Erfle
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