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Business, 30.03.2021 22:20 Zgt

Dr. Ruth is going to borrow $5,000 to help write a book. The loan is for one year and the money can be borrowed at either the prime rate or the LIBOR rate. Assume the prime rate is 11% and LIBOR 1.5% less. Also assume there will be a $45 transaction fee with LIBOR (this amount must be added to the interest cost with LIBOR). Which load has the lower effective interest cost?

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Dr. Ruth is going to borrow $5,000 to help write a book. The loan is for one year and the money can...
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