(c) Tirana Berhad need short term financing to buy a new machine cost around RM350,000. The company get offer from twobanks:Option 1: RHB Bank offers 85 percent financing with 6 percent simple interest loan with 10 percent compensatingbalance.Option 2: CIMB Bank offers 90 percent financing with 8 percent discount interest loan without compensating balanceBased on above information, determine which offer that Tirana Berhad should choose and state your reason.

There are many loan option available in the market but we should check and find loan with lower…

Option 1: RHB Bank offers 85 percent financing with 6 percent simple interest loan with 10 percent ce palance. Option 2: CIMB Bank offers 90 percent financing with 8 percent discount interest loan without compensating ba Based on above information, determine which offer that Tirana Berhad should choose and state your reason.

Option 1: RHB Bank offers 85 percent financing with 6 percent simple interest loan with 10 percent ce palance. Option 2: CIMB Bank offers 90 percent financing with 8 percent discount interest loan without compensating ba Based on above information, determine which offer that Tirana Berhad should choose and state your reason.

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Your company is considering three options for financing its short term operations i. Borrow Tk.25 million from Shuktara Bank at 15 percent interest rate and a 20 percent compensating balance requirement signing a 60 day promissory note. ii. Borrow Tk.25 million from Chandramukhi Bank at 15 percent discount interest. i. Forego discount on a trade credit on terms 3/10, net 50. Strictly based on effective cost, which option would you select and why?
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How do you calculate the rate on an Adjustable Rate Mortgage? Survey the cost of funds an local banks. O Use the amortization formula. With a financial calculator. O Index + Margin
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please answer both subparts
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