Matt's Machine Company Has Borrowed $10 Million for Four Months

question 95

Multiple Choice

Matt's Machine Company has borrowed $10 million for four months at 5.5% APR, using inventory stored in a field warehouse as collateral. The warehouse fee is 0.5%, payable at the beginning of the loan. What is Matt's EAR?

• A)5.5%
• B)7.24%
• C)0.58%
• D)7.01%

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Definitions:

Production

The method of producing products and services by integrating work, resources, and technological innovation.

Organizational Structure

The way in which the work, authority, and systems of an organization are arranged and coordinated to achieve its objectives.

Specialized Jobs

Positions that require a specific set of skills, knowledge, or expertise, often within a niche area.

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