You  are going to borrow $10,000. You approach 4 banks. Bank A indicates that they will charge 14.5% compounded annually. Bank B indicates that they will charge 13.9% compounded semi-annually. Bank C indicates that they will charge 13.65% compounded quarterly and Bank D indicates that they will charge 13.60% compounded monthly. From which bank should you borrow the money?

Answer rating: 100% (QA)

To determine from which bank you should borrow the money we need to compare the effective interest r... View the full answer