Busn 379 Course Project1

Running head: COURSE PROJECT 1

COURSE PROJECT 1

DeVry University, Busn 379

Course Project - Part 1

Task 1: Assessing the loan options for Air Best Parts Inc.

1) Air Best Parts is currently seeking loans from National First Bank and Regions Best. National First bank is offering loans at Prime Rate % compounded semiannually, while Regions Best is offering % compounded monthly. Both of these rates are stated rates, and in order to compare these two loan options, the stated rates or APRs must be converted to effective rates. The Prime Rate for National First is %. Below are the EARs for both banks:

National First: ( 10%)

[1 ()]2 -1 or %

Regions Best:

[1 ()]12 - 1 or %

2) Based on the...