Computation of interest rate


Problem:

A business is requesting to borrow 38 million dollars for 15 years to develop a project

several offers from different banks
Quoted 8.50% on the 38M
Quoted 8.50% on 26 million
Quoted 6.50% on the 38 million
Quoted 6.50% on the 26 million

What is the saving between the 8.50 and 6.50%

How did you figure it out. Excel or calculator? Please explain.

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Finance Basics: Computation of interest rate
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