You want to borrow $200,000 in order to purchase an asset for the company you created in Unit II, so you visited two banks. One bank will offer you a loan at a 10% annual interest rate for 5 years. The second bank will offer you a $200,000 loan at 2% a month for 5 years. Which would you decide to choose, and why? Show your calculations.

Answer rating: 100% (QA)

To determine which loan option is better we can calculate the total cost of each loan from both bank... View the full answer