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

question 157

True/False

Tangshan Mining borrowed $10,000 for one year under a line of credit with a stated interest rate of 8 percent and a 10 percent compensating balance. Normally, the firm keeps almost no money in its checking account. Based on this information, the effective annual interest rate on the loan was 8.89 percent.

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Definitions:

Conscientiousness

A personality trait characterized by being organized, responsible, and reliable, with a strong sense of duty.

Live Longest

Refers to individuals or groups of organisms that achieve the greatest lifespan within a specific population or species.

Type D Personality

A personality type characterized by the tendency towards negative affectivity and social inhibition, potentially leading to worse cardiovascular outcomes.

Distressed

Experiencing anxiety, sorrow, or pain; a state of mental suffering often triggered by external or internal stressors.