Select the Best Loan Terms from the Banks Below

question 114

Essay

Select the best loan terms from the banks below.The firm needs to obtain $500,000 in cash:
Bank A: 10% stated rate, 20% compensating balance that earns no interest.
Bank B: 12.5% stated rate, no compensating balance.
Bank C: 11% stated rate, 15% compensating balance that earns 2.5% interest.

---

Definitions:

Unique Identity

A distinguishing characteristic or trait that makes an individual or an entity distinct from others.

Human Interaction

The process of communication and exchange between individuals or groups, often involving social, cultural, or professional exchange.

Network

A group of interconnected computers, servers, and devices that can share data and resources with each other, often categorized by the scope such as LAN, WAN, or MAN.

Radio Wave Frequencies

The bands of the electromagnetic spectrum that are used for telecommunications, including radio and television broadcasting, mobile phones, and satellite communications.