Suppose a client would like to borrow R 2 2 , 5 0 0 as a personal
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Question:
Suppose a client would like to borrow R as a personal loan from a bank on the lowest possible cost available and assume that there are only three available sources of the loan banks which can lend to the client at the following lending rates:
Bank Name
Interest charge
ABSA
pa compounded quarterly
NEDBANK
pa compounded monthly
AFRICAN BANK
pa with daily compounding
Which bank would the client likely borrow from and why? Show all relevant calculations rounded off correct to two decimal places.
Related Book For
Microeconomics An Intuitive Approach with Calculus
ISBN: 978-0538453257
1st edition
Authors: Thomas Nechyba
Posted Date: