Matt's Machine Company Has Borrowed $10 Million for Four Months

question 99

Multiple Choice

Matt's Machine Company has borrowed $10 million for four months at 5.5% APR,using inventory stored in a field warehouse as collateral.The warehouse fee is 0.5%,payable at the beginning of the loan.What is Matt's EAR?

• A)5.50%
• B)7.24%
• C)0.58%
• D)7.01%
• E)3.46%

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Definitions:

Tanning Beds

Devices that emit ultraviolet radiation to produce a cosmetic tan, associated with health risks including skin cancer.

Physical Fitness Programs

Structured regimens of physical activities designed to improve and maintain physical health and wellness.

Mild Soap

Mild soap is a type of cleansing agent that is less harsh on the skin, designed to effectively cleanse without stripping the skin of its natural oils.

Moisturizing Lotion

A topical preparation used to hydrate and soften the skin, often containing a combination of emollients and humectants.