Smooth Yogurt, Inc

question 66

Multiple Choice

Smooth Yogurt, Inc. has average receivables of $80,000, which turn over once every 60 days.  It pledges all of its receivables to a bank that advances 80% of the total at 4% over prime and charges a 2% administrative fee on the total amount pledged.  If prime is 10.5%, what effective interest rate is Smooth paying for its receivables financing?

• A)6.0%
• B)14.5%
• C)15.0%
• D)29.5%

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Definitions:

Left Temporal Lobe

A region of the brain located in the left hemisphere, important for understanding language, processing auditory information, and managing memory.

Speaking

The act of conveying thoughts, opinions, or information orally through the use of vocal cords.

Supplementary Speech Area

Speech production region on the left frontal lobe dorsal surface.

Electrical Stimulation

A therapeutic technique that uses electrical impulses to cause muscles to contract, aiding in muscle rehabilitation and pain management.