PPT Slide
The Simpson Company is contemplating two short-term borrowing options. Bank A will allow them to borrow $100,000 for one year at a fixed interest rate of 13.25%, payable at maturity. Bank B has approved a loan of $105,000 for one year at a fixed rate of interest of 11.5%, but interest must be paid in advance. Which loan should the Simpson Company take?
- 1994, HarperCollins Publishers