Sask Seed Wishes to Borrow $3 Million for Two Months

question 17

Multiple Choice

Sask Seed wishes to borrow $3 million for two months.Using its inventory as collateral,it can obtain a 9% (APR) loan.The lender requires that a warehouse arrangement be used,with a warehouse fee of $9,000,payable at the end of the month.What is the firm's EAR for this loan?

• A)17.4%
• B)21.6%
• C)11.3%
• D)9.3%
• E)9%

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Definitions:

MRI

A non-invasive imaging technology that uses a magnetic field and radio waves to create detailed images of the organs and tissues in the body.

PET Scan

A Positron Emission Tomography scan, a type of imaging test that helps reveal how tissues and organs are functioning by using a radioactive drug tracer.

Electroencephalography

A medical imaging technique that records the electrical activity of the brain using electrodes placed on the scalp. It's utilized in the diagnosis of neurological conditions.

Olfactory Nerves

The pair of cranial nerves that transmit impulses related to smell from the nose to the brain.