LMN CoPlans to Enter into a Secured Term Loan by Assigning

question 124

Multiple Choice

LMN Co.plans to enter into a secured term loan by assigning its receivables of $600,000 with an average maturity date of 30 days.The finance company will loan 75% of the receivables value at 11% interest plus a service fee of 0.05% of the total receivables pledged.What is the total cost of this financing arrangement?

• A)$3,039
• B)$3,872
• C)$4,049
• D)$4,368

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Definitions:

Passion

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Mary

A central figure in Christianity, known as the mother of Jesus Christ, revered for her purity and devotion.

Virgin and Child

A common subject in Christian art depicting Mary, the mother of Jesus, holding the infant Jesus, symbolizing maternal love and the importance of the Christ child.

Chartres Cathedral

A historic French cathedral renowned for its Gothic architecture, stained glass windows, and status as a major pilgrimage destination.