After examining the various personal loan rates available to you, you find that you can borrow funds from a finance company at an APR of 8% compounded daily or from a bank at an APR of 9% compounded quarterly. Which alternative is more attractive?
a- If you borrow $100 from a finance company at an APR of 8% compounded daily for 1 year, how much do you need to payoff the loan?.........$ (Round to the nearest cent)
b- If you borrow $100 from a bank at an APR of 9% compounded quarterly for 1 year, how much do you need to payoff the loan?...........$ (Round to the nearest cent)
c- Based on the findings in parts (a) and (b), which alternative is more attractive? The loan from the bank or the loan from the finance company?