A Firm Has a Line of Credit and Borrows $25,000

question 126

Multiple Choice

A firm has a line of credit and borrows $25,000 at 9 percent interest for 180 days or half a year. What is the effective rate of interest on this loan if the interest is paid in advance?

• A) 4.7 percent
• B) 9.4 percent
• C) 9.9 percent
• D) 10.3 percent

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Definitions:

Pressure Ulcers

Injuries to the skin and underlying tissue, usually over a bony area, due to prolonged pressure or friction.

Frail Older Patient

A term describing elderly individuals who have decreased physiological reserves and are vulnerable to developing increased dependency or sudden decline in health.

Turning

In a medical context, it refers to repositioning a patient, especially one who is bedridden, to prevent pressure ulcers and improve comfort.

Melanoma

A type of skin cancer that originates in the melanocytes, which are cells that produce melanin, the pigment that colors the skin.