Strata Services Has a Three Month $450,000 Line of Credit

question 82

Multiple Choice

Strata Services has a three month $450,000 line of credit at an APR of 8%.The loan has a loan origination fee of 1.5%.What is the actual three-month interest rate paid expressed as an EAR?

• A)9.8%
• B)9.5%
• C)14.75%
• D)8.24%
• E)15%

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Definitions:

Lifting Object

The act of raising or moving an object from a lower to a higher position through physical strength or mechanical means.

Intervertebral Disks

Cushion-like pads situated between vertebrae in the spine that act as shock absorbers and facilitate movement.

Back Problems

Issues or disorders affecting the spine or back muscles, often causing pain and discomfort.

Degeneration

The process of deterioration or decline in quality, function, or condition, often related to organs, tissues, or cells in the body.