Detta Borrows $20,000 from the Bank

question 79

Multiple Choice

Detta borrows $20,000 from the bank. For a five-year loan, the bank requires annual end-of-year payments of $4,878.05. The annual interest rate on the loan is ________.

• A) 6 percent
• B) 7 percent
• C) 8 percent
• D) 9 percent

---

Definitions:

JIT Action

An initiative or measure taken to implement Just-In-Time production, aiming to reduce waste by receiving goods only as they are needed in the production process.

Inventory

Inventory is the quantity of goods that a business has on hand, including materials, components, and finished products.

Pull System

A production strategy where processes are initiated by actual demand, aimed at reducing waste in the production process.

Lean Operations

Lean operations refer to practices aimed at maximizing value and minimizing waste within a manufacturing or service process, focusing on efficiency and the removal of non-value-adding activities.