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

question 75

Multiple Choice

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 APY ,or annual percentage yield,calculation?

• A) 4.33%
• B) 10.34%
• C) 12.25%
• D) 12.46%

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Definitions:

Self-Schema

Cognitive representations of oneself that organize and guide the processing of self-relevant information.

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The mental process of constructing an internal model of the external world, objects, or events based on perception and information processing.

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Unbiased and impartial; not influenced by personal feelings or opinions in considering and representing facts.