Question: I need help please D G H M N You are thinking of expanding your business and need a loan of $325,000. The lender, Bank
D G H M N You are thinking of expanding your business and need a loan of $325,000. The lender, Bank of America, offers two different types of loans. Loan A la 5-year, quarterly interest toan at a reported rate of 5.25% percent. Loan B is a 5-year, daly interest loan at a reported tate of 5.155. Use EAR and APR to answer the questions 64: You decide to go with the lower interest rate loan at 5.15% thinking it is cheaper. Was this a good decision? Support your answer quantitatively and explain qualitatively, 1 2 3 4 5 17 19 20 21 22 23 6B: What would the stated rate have to be on the quarterly pay loan to make you indifferent between the two loans? Calculate your answer 24 25 26 28 6C: Would you be better off paying this as an ordinary annuity or annuity due? Explain your answer. 30 31 32 33 34 35 37 38 39
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