Farmers Bank offers to lend you $30,000 at a nominal rate of 6.0%, simple interest, with interest
Fantastic news! We've Found the answer you've been seeking!
Question:
Farmers Bank offers to lend you $30,000 at a nominal rate of 6.0%, simple interest, with interest paid quarterly. Gold Coast offers to lend you the $30,000, but it will charge 7.0%, simple interest, with interest paid semiannually. What's the difference in the effective annual rates charged by the two banks?
Related Book For
Financial Management Principles and Applications
ISBN: 978-0133423822
12th edition
Authors: Sheridan Titman, Arthur Keown, John Martin
Posted Date: