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

question 160

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 9.50 percent.

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Definitions:

Civility

The act of showing respect towards others and engaging in polite and socially acceptable behavior.

Demonstrating Power

The act of showing or exerting authority, control, or influence over others, often to assert dominance or achieve objectives.

Interaction

is the reciprocal action or influence between entities, leading to a continuous exchange of information or action.

Interpersonal Trust Scale

A psychological tool used to measure the degree of trust between individuals in personal and professional relationships.