Gemini Real Estate Is Offered a $2 Million Line of Credit

question 94

Multiple Choice

Gemini Real Estate is offered a $2 million line of credit for four months at an APR of 9%. This loan has a loan origination fee of 1.5%. What is the actual four-month interest rate paid, expressed as an EAR?

• A) 4.57%
• B) 9.68%
• C) 12.44%
• D) 14.34%

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Definitions:

Circulatory System

The body's system responsible for the movement of blood, nutrients, oxygen, carbon dioxide, and hormones to and from cells throughout the body to provide nourishment, help in fighting diseases, maintain a stable internal environment, and remove waste.

Diabetes

Diabetes is a chronic condition characterized by high levels of glucose in the blood, resulting from the body's inability to produce or effectively use insulin.

Graves' Disease

An autoimmune disorder characterized by the overproduction of thyroid hormones, leading to hyperthyroidism.

Insulin Deficiency

A condition characterized by the inadequate production or use of insulin, leading to elevated blood glucose levels.