Business Book Publishing needs to borrow $800,000 in order to finance its new inventory. Two banks they were considering offered different annual loan terms: Marine Bank offered a 7% loan with a 15% compensating balance to be paid back in quarterly payments. McLean National Bank offered Business Book Publishing an 8.25% loan to be paid back semi-annually. Which loan terms should Business Book Publishing take?

Answer rating: 100% (QA)

Marine Bank Mclean national bank Principal 800000 800000 Interest rate 7 825 semi annually Compensa... View the full answer