Bhupinder's Bakery Has a One-Year $300,000 Line of Credit at an Interest

question 61

Multiple Choice

Bhupinder's Bakery has a one-year $300,000 line of credit at an interest rate of 6% (EAR) .The loan has a loan origination fee of 1%.What is the actual interest rate paid?

• A)7%
• B)6.7%
• C)7.07%
• D)7.14%
• E)6%

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Definitions:

On Time

The occurrence of an event at the scheduled or expected time without delay.

Customers List

A compiled record of individuals or entities that purchase goods or services from a business.

Delayed Charges

Charges for goods or services that are incurred at one time but billed at a future date.

While Entering Transactions

Refers to the act of recording financial events or changes in the financial status of a business at the time those transactions occur.