Question: Alpha Co. needs to borrow funds to support operations during the summer. Alpha's CFO is trying to decide whether to borrow from the Santander Bank

Alpha Co. needs to borrow funds to support operations during the summer. Alpha's CFO is trying to decide whether to borrow from the Santander Bank or the Bank of Galicia. The loan offered by Santander Bank has a 8.2% nominal rate, whereas the loan offered by the Bank of Galicia has a 8.0% nominal interest rate with monthly payments. Which bank should Alpha use for the loan? Justify your answer.

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