You just signed an iou for a loan of 125000 at 5 interest, Financial Management

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You just signed an iou for a loan of 125000 at 5 interest

You just signed an IOU for a loan of $125,000 at 5% interest rate for 20 years. A new loan is available for 4% interest rate for the same maturity. To obtain this new loan, you must pay the bank $7,500 today. Should you go ahead and take on this new loan?

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Financial Management: You just signed an iou for a loan of 125000 at 5 interest

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Financial Management: You just signed an iou for a loan of 125000 at 5 interest

Reference No:- TGS01404326

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