Gemini Real Estate Is Offered a $2 Million Line of Credit

question 63

Multiple Choice

Gemini Real Estate is offered a $2 million line of credit for four months at an APR of 9%.This loan has a loan origination fee of 1.5%.What is the actual four-month interest rate paid,expressed as an EAR?

• A)4.57%
• B)9.68%
• C)12.44%
• D)14.34%
• E)11.14%

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Definitions:

Distress Tolerance

The ability to endure emotional discomfort or pain without attempting to avoid or escape it.

Self-care

The practice of taking an active role in protecting one's own well-being and happiness, particularly during periods of stress.

In Vivo

A term used to describe processes or experiments conducted in living organisms.

Clinical Setting

A healthcare environment where patient diagnosis, treatment, and care are provided, such as hospitals or clinics.