Katie's Karate Dojo Has a Committed Line of Credit with a Maximum

question 84

Multiple Choice

Katie's Karate Dojo has a committed line of credit with a maximum of $350,000 and interest rate of 6% (EAR) .The loan has a commitment fee of 0.5% (EAR) .If the firm borrows $300,000 at the start of the year and repays it at the end of the year,what is the total cost of the loan?

• A)$18,000
• B)$18,250
• C)$19,500
• D)$21,250
• E)$21,000

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Definitions:

Sinus Bradycardia

A condition where the heart rate is slower than normal due to a slower-than-normal rate of impulses in the sinoatrial node.

Interrupted Baseline

In electrocardiography, a situation where the line tracing the heart's electrical rhythm on an EKG is disrupted or erratic, indicating possible irregularities.

Electrode

An instrument with a point or a surface that transmits current to the patient’s body; also known as a sensor used to conduct electricity from the body to the electrocardiograph.

Broken Lead

Referring to a damaged or interrupted leadership role or the mechanical failure of a pencil's graphite.