A financial company, AAA Inc. wants to earn an effective annual rate of 9% on its loan. If the interest is compounded monthly, what APR monthly compounding must AAA charge? Another company BBB Inc. changes 8.8% APR quarterly compounded for its loan. You are looking to take a loan and you only have 2 choices, either AAA or BBB. Which one will you choose and why? Give me the solution in calculator (BA II plus) approach and Formula approach.

A financial company, AAA Inc. wants to earn an effective annual rate of 9% on its loan. If the interest is compounded monthly, what APR monthly compounding must AAA charge? Another company BBB Inc. changes 8.8% APR quarterly compounded for its loan. You are looking to take a loan and you only have 2 choices, either AAA or BBB. Which one will you choose and why? Give me the solution in calculator (BA II plus) approach and Formula approach.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter19: Lease And Intermediate-term Financing

Section: Chapter Questions

Problem 14P

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