need a short term loan More specifically I need to borrow $1000 for 1 year and s

Question

need a short term loan More specifically I need to borrow $1000 for 1 year and such loans usually charge 10% simple (not compound) interest. I have resigned myself to the fact that I will need to pay $100 in interest fees to the lender. In consideration of the short duration of the loan, the terms specify that repayment will occur at the end of the year....in other words this is not an installment loan. There are two lenders willing to loan me the money.1.) Lender A is offering a standard single payment loan...I will get $1000 now and payback $1100 at the end of a year.2.) Lender B is offering a discount loan which means he/she will deduct the interest payment up front....I will borrow $1000 but receive $900 now (after deduction for the interest) and then repay $1000 at the end of a year.In both cases, I will end up paying the lender $100 interest. Which is loan is better and why?

Explanation / Answer

first option is better as according to ist option you will get 1000$, so the more money you have, you can have the more business and hence can earn more money, so ist option is better than 2nd

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