Use the Following Information to Answer the Question(s)below

question 13

Multiple Choice

Use the following information to answer the question(s) below.
Taggart Transcontinental needs a $100,000 loan for the next 30 days.Taggart has three alternatives available:
Alternative #1: Forgo the discount on its trade credit agreement that offers terms of 2/5 net 35.
Alternative #2: Borrow the money from Bank A,which has offered to lend the firm $100,000 for one month at
an APR of 9%.The bank will require a (no-interest) compensating balance of 10% of the face-value of the loan and will charge a $200 loan origination fee,which means that Taggart must borrow even more than the $100,000 they need.
Alternative #3: Borrow the money from Bank B,which has offered to lend the firm $100,000 for one month at an APR of 12%.The loan has a 1% origination fee.
-The effective annual rate for Taggart if they choose alternative #1 is closest to:

• A)13.9%.
• B)18.8%.
• C)27.0%.
• D)27.9%.

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Definitions:

Heart Sounds

Sounds produced by the closing of heart valves and the rushing of blood through the heart, typically heard as a "lub-dub" sound with a stethoscope.

Chamber Walls

Structural boundaries of a space or cavity within an organ, often referring to the heart’s compartments.

SA Node

The sinoatrial node, often called the SA Node, acts as the natural pacemaker of the heart, initiating the heart's electrical impulse.

Sphygmomanometer

A device used to measure blood pressure by applying pressure to an artery and gradually releasing it.