Willy Café Inc. needs to borrow $100,000 for a period of one year. There are three potential banks that agreed to lend the firm,
The first is a one-year loan from Bank One, the interest charged is 8% APR compounded daily, the second account, Max Saver account with Bank of Australia, charging 8.10% APR compounded monthly. The third offer is from Bank of Sydney, charging 8.25% APR compounded annually.
As the CFO of Willy Café Inc., which bank do you recommend to your firm?
Bank of Australia
Bank of Sydney
Indifferent between the three banks