Tangshan Mining Borrowed $100,000 for One Year Under a Line

question 42

Multiple Choice

Tangshan Mining borrowed $100,000 for one year under a line of credit with a stated interest rate of 7.5 percent and a 15 percent compensating balance. Normally, the firm keeps a balance of about $10,000 in its checking account. Based on this information, the effective annual interest rate on the loan was ________ percent.

• A) 7.89%
• B) 8.05%
• C) 8.89%
• D) 7.29%

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Definitions:

Body Part

Any section or component of an organism that is identified as an independent unit.

Alpha Rhythm

A pattern of neural oscillations in the frequency range of 8–12 Hz detected in the brain's electrical activity, often associated with a state of relaxation.

Brain Emits

Refers to the various types of signals or substances released by the brain under different physiological conditions.

Bilaterally Symmetrical

Describes organisms with body structures that are mirror images on either side of a central axis, common in many animals, including humans.