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Key Enterprises Borrows $12,000 for a Short-Term Purpose

question 40

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Key Enterprises borrows $12,000 for a short-term purpose.The loan will be repaid after 120 days,with Key paying a total of $12,400.What is the approximate cost of credit using the APR ,or annual percentage rate,calculation?


Definitions:

OL Coils

In the context of electrical or control systems, this likely refers to "Overload Coils", which are part of overload protection devices in motors and other equipment to prevent overcurrent situations.

Contactor

A special-purpose relay designed to establish and interrupt the power flow of high-current electric circuits.

Heavy Power Loads

Electrical loads that consume a significant amount of power, typically found in industrial settings.

Overload Relay

A special-purpose relay designed so that its contacts transfer whenever its current exceeds a predetermined value. Overload relays are used with electric motors to prevent motor burnout due to mechanical overload.

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