Business, 24.06.2020 23:01 PatrickHB

Val is deciding between 3 loans that would each involve her receiving $2,000 today and then paying back the original principal and all accrued interest in 1 year from today. Loan A has an APR of 14.09%, compounded annually. Loan B has an APR of 13.24%, compounded continuously. Loan C has an APR of 13.36%, compounded quarterly. Which of the following assertions is true if Val prefers loans with lower costs more than he prefers loans with higher costs? 1. Val would prefer loan A to loan B and Val would prefer loan A to loan C
2. Val would prefer loan B to loan A and Val would prefer loan C to loan A
3. Val would prefer loan B to loan A and Val would prefer loan A to loan C4. Val would prefer loan A to loan B and Val would prefer loan C to loan A

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Val is deciding between 3 loans that would each involve her receiving $2,000 today and then paying b...

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