Luther Industries Is Offered a $1 Million Dollar Loan for Four

question 6

Multiple Choice

Luther Industries is offered a $1 million dollar loan for four months at an APR of 9%.If Luther's bank requires that the firm maintain a compensating balance equal to 10% of the loan amount in a non-interest bearing account,then the effective annual rate EAR for this loan is closest to:

• A)50.0%
• B)12.6%
• C)14.4%
• D)71.5%

---

Definitions:

Protein-Coding Segments

Portions of DNA or RNA that contain the information necessary to build proteins, crucial for all biological processes.

Pseudogenes

Segments of DNA that resemble functional genes but are nonfunctional due to mutations.

Genetic Variation

The diversity in gene frequencies within a population, which is a primary source of evolution and adaptation.

Germline Cells

Cells that are involved in the reproduction process and give rise to gametes, carrying genetic information to the offspring.