Company A is currently cash-constrained, and must make a decision about whether to delay paying...
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Accounting
Company A is currently cash-constrained, and must make a decision about whether to delay paying one of its suppliers, or taking out a loan. They owe the supplier $19,627, and they can borrow the money from Bank B, which has offered to lend the firm $19,627 for 1 months at an APR of 15% (compounded). The loan has a 2.85% loan origination fee.
What would be the cost for Company A if they decide to borrow from Bank B?
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