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    Which interest terms are better?

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    Bank A offers the following terms for a $10 million loan:

    - interest rate: 8 percent for one year on funds borrowed
    - fees: 0.5 percent of the unused balance for the unused term of the loan

    Bank B offers the following terms for a $10 million loan:

    - interest rate: 6.6 percent for one year on funds borrowed
    - fees: 2 percent origination fee

    Which terms are better if the firm intends to borrow the $10 million fr the entire year?

    If the firm plans to use the funds for only three months, which terms are better?

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    https://brainmass.com/business/interest-rates/interest-terms-better-82117

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    Analysis of cost is shown for you.

    $2.19

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