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

Accounting

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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