(Answered) You have a choice of borrowing money from a finance company

Finance

You have a choice of borrowing money from a finance company at 19% compounded daily or borrowing from a bank at 21% compounded weekly. Which alternative is the most attractive? If you can borrow funds from a finance company at 19% compounded daily,

the EAR for the loan is ..... If you borrow fund from a bank at 21% compounded weekly,

the EAR of this loan is ..... Based on the finding above, which alternative is more attractive?

A) The loan from the Bank at 21% compounded weekly

B) The loan from the finance company at 19% compounded daily.

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