You Have Agreed to a $50,000 Fixed-Rate Loan from First

question 60

Multiple Choice

You have agreed to a $50,000 fixed-rate loan from First National Bank today and promise to repay the loan with 36 equal monthly payments at an APR of 6.50%.What is the EAR of this loan?

• A)6.50%
• B)6.70%
• C)6.90%
• D)7.10%

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Definitions:

Corporate Profit

The financial gain retained by a corporation after deducting expenses from its income.

Objectionable Activities

Activities that are considered unacceptable or offensive by societal standards, often leading to legal, ethical, or regulatory scrutiny.

Private-Profit

Income or gain derived from one's business, profession, or capital, exclusive to the individual or corporation earning it.

Officers

Individuals appointed to manage the day-to-day operations of a corporation, such as a CEO, CFO, or secretary, and are authorized to make decisions on behalf of the corporation.