Strata Services Has a Three Month $450,000 Line of Credit

question 82

Multiple Choice

Strata Services has a three month $450,000 line of credit at an APR of 8%.The loan has a loan origination fee of 1.5%.What is the actual three-month interest rate paid expressed as an EAR?

• A)9.8%
• B)9.5%
• C)14.75%
• D)8.24%
• E)15%

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Definitions:

Public Health System

The network of organizations and institutions aimed at protecting and improving the health of populations through preventative care, education, and healthcare services.

Drinking Water

Water that is safe for consumption by humans and other living organisms without risk of health effects.

Sanitation Services

Public services that manage waste disposal, sewage, and cleanliness to maintain public health and environmental standards.

Racism

Prejudice, discrimination, or antagonism directed against individuals or groups based on their race or ethnicity.