Compare the cost of borrowing $4300 for six months (180 days) in the following two scenarios....
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Compare the cost of borrowing $4300 for six months (180 days) in the following two scenarios. How much will you save if you take out the bank loan as opposed to the cash advance? (12 marks) o You take out the money as a cash advance at 19.99%, compounded daily. Your creditor charges a cash advance fee of $5. o You take out a bank loan for the amount of the purchase at 6.75%, compounded monthly. Compare the cost of borrowing $4300 for six months (180 days) in the following two scenarios. How much will you save if you take out the bank loan as opposed to the cash advance? (12 marks) o You take out the money as a cash advance at 19.99%, compounded daily. Your creditor charges a cash advance fee of $5. o You take out a bank loan for the amount of the purchase at 6.75%, compounded monthly.
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