The proctor company must arrange 235000 financing for its


The Proctor Company must arrange $235,000 financing for its working capital requirements for the coming year. Proctor can (a) borrow from its bank on a simple interest basis (interest payable at the end of the loan) for one year at 7.8 percent simple rate, (b) borrow on a three-month, renewable loan at a 7.6 percent simple interest rate, or (c) borrow on an instalment loan basis at 6.0 percent add-on rate with 12 end-of-month payments. What is the rEAR of the least expensive type of credit?

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Financial Management: The proctor company must arrange 235000 financing for its
Reference No:- TGS01092027

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