Business, 05.10.2019 05:20 meth77

Dr. ruth is going to borrow $5,800 to 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 9 percent and libor 1.0 percent less. also assume there will be a $55 transaction fee with libor (this amount must be added to the interest cost with libor). a. what is the effective interest rate on the libor loan? (use a 360-day year. do not round intermediate calculations. input your answer as a percent rounded to 2 decimal places.) b. which loan has the lower effective interest cost? libor prime

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Dr. ruth is going to borrow $5,800 to write a book. the loan is for one year and the money can be b...