Ahab's Army Surplus Has a Committed Line of Credit with a Maximum

question 12

Multiple Choice

Ahab's Army Surplus has a committed line of credit with a maximum of $1.2 million and interest rate of 3.5% (EAR) .The loan has a commitment fee of 0.45% (EAR) .If the firm borrows $900,000 at the start of the year and repays it at the end of the year,what is the total cost of the loan?

• A)$42,000
• B)$35,550
• C)$43,350
• D)$32,850
• E)$31,500

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Definitions:

Schizophrenia

A severe mental disorder characterized by distortions in thinking, perception, emotions, and behavior, often manifesting as hallucinations and delusions.

Obsessive-Compulsive Disorder (OCD)

A mental health disorder characterized by persistent unwanted thoughts (obsessions) and repetitive behaviors or mental acts (compulsions).

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The study of heredity and the variation of inherited characteristics.