1 you need to borrow 10000 and the following alternatives, Ask an Expert

Economics

1) You need to borrow $10,000 and the following alternatives are available: -

a) Pay $2983 at the end of each year for 5 years, starting at the end of the first year (5 payments total)

b) Pay $237.90 at the end of each month for 5 years, starting at the end of the first month (60 payments total)

On the basis of interest rate, what alternative is superior? Please draw cash flow diagrams.

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M91707541

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