The Arthos Group Needs to Borrow $200,000 from Its Bank

question 11

Multiple Choice

The Arthos Group needs to borrow $200,000 from its bank.The bank has offered the company a 12-month installment loan (monthly payments) with 9 percent add-on interest.What is the effective annual rate (EAR) of this loan?

• A) 16.22%
• B) 17.97%
• C) 17.48%
• D) 18.67%
• E) 18.00%

---

Definitions:

Economic Forces

Factors that influence the direction and dynamics of an economy, such as supply and demand, inflation, and government policy.

Media Production

The process of creating media content, from ideation through to the final output, including films, television programs, and digital content.

Media Outlets

Entities or platforms such as newspapers, television stations, radio stations, and websites that disseminate news and information to the public.

Consolidating Companies

Firms that are involved in mergers and acquisitions to strengthen their market positions, reduce competition, and achieve economies of scale.