Tangshan Mining Borrowed $10,000 for One Year Under a Revolving

question 103

True/False

Tangshan Mining borrowed $10,000 for one year under a revolving credit agreement that authorized and guaranteed the firm access to $20,000. The revolving credit agreement had a stated interest rate of 8 percent and charged the firm a half percent commitment fee on the unused portion of the agreement. Based on this information, the effective annual interest rate on the loan was 8.50 percent.

---

Definitions:

Positron Emission Tomography

An imaging test that uses a radioactive substance to visualize and measure metabolic processes in the body, commonly used in medical diagnoses and research.

Biochemical Activity

Refers to the chemical processes and reactions that occur within living organisms.

Biological Risk Factors

Refers to physical and genetic characteristics that increase the likelihood of developing a disease or disorder.

Heart Disease

A range of conditions that affect the heart, including coronary artery disease, arrhythmias, and heart defects.