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Your firm is considering two? one-year loan options for a $ 489 comma 000 loan. The...

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Finance

Your firm is considering two? one-year loan options for a $ 489comma 000 loan. The first carries fees of 2 % of the loan amountand charges interest of 3.7 % of the loan amount. The other carriesfees of 1.8 % of the loan amount and charges interest of 4.5 % ofthe loan amount.

a. What is the net amount of funds from each? loan?

b. Based on the net amount of? funds, what is the true interestrate of each? loan?

Answer & Explanation Solved by verified expert
4.1 Ratings (527 Votes)
a Amount of loan 489000 First loan fees 2 So net amount of funds loan 1fees 48900012 479220 Second loan    See Answer
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