Which of the following offer the lowest effective rate for, Ask an Expert

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Which of the following offer the lowest effective rate for Wolf Howl jackets? Assume Wolf Howl will need to borrow $800,000 for 180 days.

A 14 percent APR bank loan
A 13 percent APR, discounted bank loan.
12.5 percent APR with fees of 1 percent for receivables financing.
A $2 million revolving credit agreement with an APR of 12 percent, a commitment fee of 0.5 percent on the unused balance, and a 10 percent compensating balance requirement.

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Category:- Basic Finance
Reference No.:- M91875484

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