Use the Following Information to Answer the Question(s)below

question 36

Multiple Choice

Use the following information to answer the question(s) below.
Taggart Transcontinental needs a $100,000 loan for the next 30 days.Taggart has three alternatives available:
Alternative #1: Forgo the discount on its trade credit agreement that offers terms of 2/5 net 35.
Alternative #2: Borrow the money from Bank A,which has offered to lend the firm $100,000 for one month at
an APR of 9%.The bank will require a (no-interest) compensating balance of 10% of the face-value of the loan and will charge a $200 loan origination fee,which means that Taggart must borrow even more than the $100,000 they need.
Alternative #3: Borrow the money from Bank B,which has offered to lend the firm $100,000 for one month at an APR of 12%.The loan has a 1% origination fee.
-The effective annual rate for Taggart if they choose alternative #3 is closest to:

• A)13.9%.
• B)18.8%.
• C)27.0%.
• D)27.9%.

Describe the characteristics and determinants of market equilibrium.

Explain the law of supply and the law of demand.

Understand the relationships between prices and quantity demanded or supplied.

Recognize the effects of shifts in supply and demand curves on market outcomes.

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Definitions:

Federal Law

Laws enacted by the national government of a country, which apply across the entire nation, superseding state laws in areas of conflict.

Physically Destroying

The act of causing physical damage to something to the point that it loses its value, functionality, or identity.

Writing Requirement

Writing requirement refers to the legal stipulation that certain contracts or agreements must be in written form to be legally enforceable.

Brain-Death Standard

The medical and legal criteria used to declare a person legally dead based on the irreversible cessation of all brain activity.