Idaho Mining,Inc

question 74

Multiple Choice

Idaho Mining,Inc.borrows at prime plus 1.5% on its line of credit.The line requires a 15% compensating balance.If the prime rate is 9% and Idaho Mining plans on borrowing for a period of one year,what is the nominal APR of the line of credit?

• A) 9.0%
• B) 6.0%
• C) 10.6%
• D) 12.4%

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Definitions:

Mental Rotation

The cognitive ability to rotate mental representations of two-dimensional and three-dimensional objects.

Analogical Processes

Refers to the cognitive ability to draw similarities and make comparisons between different situations, objects, or concepts based on shared attributes or relationships.

Mental Representations

Contents in the mind that stand for some object, event, or state of affairs.

Propositions

Statements or assertions that express judgments or opinions.