Palm Beach Yachts Has a Line of Credit with a Local

question 31

Multiple Choice

Palm Beach Yachts has a line of credit with a local bank that permits it to borrow up to $1.8 million at any time.The interest rate is .78 percent per month.The bank charges compound interest and also requires that 5 percent of the amount borrowed be deposited into a non-interest-bearing account.What is the effective annual interest rate on this loan?

• A)10.68 percent
• B)10.43 percent
• C)9.74 percent
• D)10.29 percent
• E)9.91 percent

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Definitions:

Organizational Commitment

The psychological attachment and loyalty an employee feels towards their organization, often reflecting in higher motivation and lower turnover.

Organizational Commitment

The psychological attachment and loyalty an employee feels towards their organization, influencing their willingness to contribute to the company's goals.

Turnover

The act of replacing one employee with another, usually quantified as a rate within organizations, reflecting the number of employees leaving.

Citizenship Behaviour

Citizenship Behaviour pertains to actions taken by employees that contribute positively to the organizational culture and environment but are not directly part of their formal job duties.