A person wanting to borrow $1250 for 15 months is quoted a discount rate of 12.25% at Bank A. Theperson is quoted a simple interest rate of 12.25% at Bank B. Bank C quotes the person a compoundinterest rate of 12.25% compounded monthly. As the person's financial advisor, which bank would yourecommend?

What value is owed for each bank?

 

Answer rating: 100% (QA)

I would recommend Bank A Discount Rate based on the information provided Heres a breakdown of why and the calculations for each bank Recommendation Ba... View the full answer