How to Calculate Cost-of-Borrowed Capital for LAS vs Alternatives
📐 Cost of Borrowed Capital: LAS vs Alternatives Summary: Don’t just compare headline rates. Compute the Effective Annual Rate (EAR) plus fees for LAS, personal loans, overdrafts, and margin funding to find the true cheapest source of capital. 🤓 1. Calculating EAR EAR = (1 + r/n)n – 1, where r = nominal rate, n […]
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