Patrick needs to borrow 70000 to start a business expansion


Patrick needs to borrow $70,000 to start a business expansion project. His bank agrees to lend him the money over a 5-year term at an APR of 9.25% and will accept either monthly or quarterly payments with no change in the quoted APR. Calculate the periodic payment under each alternative and compare the total amount paid each year under each option. Which payment term should Patrick accept and why?

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Finance Basics: Patrick needs to borrow 70000 to start a business expansion
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