A Firm Has a Line of Credit and Borrows $25,000

question 33

Multiple Choice

A firm has a line of credit and borrows $25,000 at 9 percent interest for 180 days or half a year.What is the effective rate of interest on this loan if the interest is paid in advance?

• A) 9.4 percent
• B) 4.7 percent
• C) 9.9 percent
• D) 10.3 percent

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Definitions:

Human Resources Function

The division of an organization focused on recruitment, management, and direction of people who work in it.

Security Risks

Potential threats that can lead to unauthorized access, use, disclosure, disruption, modification, or destruction of information or information systems.

Sensitive Information

Refers to data that must be protected due to its confidential nature, including personal identification numbers, financial records, or any information that could lead to privacy breaches if disclosed.

Outsourcing

The business practice of hiring external firms to perform services or create goods that traditionally were performed in-house by the company's own employees and staff.