Winnipeg Washing Machines Wishes to Borrow $1

question 18

Multiple Choice

Winnipeg Washing Machines wishes to borrow $1.5 million for one month.Using its inventory as collateral,it can obtain a 10% (APR) loan.The lender requires that a warehouse arrangement be used,with a warehouse fee of $8,500,payable at the end of the month.What is the firm's EAR for this loan?

• A)18.2%
• B)16.8%
• C)10.5%
• D)17%
• E)17.4%

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Definitions:

Working with Abusive Families

An approach in social work or psychology focused on intervention and support for families experiencing patterns of abuse.

Outrage

A powerful feeling of shock and anger usually caused by something seen as unjust, offensive, or wrong.

Empathy

The ability to understand and share the feelings of another person from their perspective.

Vulnerable to Abuse

The increased risk some individuals or groups face of being mistreated or exploited.