Matt's Machine Company Has Borrowed $10 Million for Four Months

question 30

Multiple Choice

Matt's Machine Company has borrowed $10 million for four months at 5.5% APR,using inventory stored in a field warehouse as collateral.The warehouse fee is 0.5%,payable at the end of the loan.What is Matt's EAR?

• A)5.5%
• B)7.20%
• C)0.58%
• D)7.01%
• E)3.46%

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Definitions:

Common Sense

Practical judgment concerning everyday matters or basic intelligence that is shared by a significant number of people.

STAR Approach

The STAR Approach is a structured manner of responding to a behavioral-based interview question by discussing the specific Situation, Task, Action, and Result of the situation you are describing.

Behavioural Questions

Interview questions aimed at understanding a candidate's past behavior in specific situations as a predictor of future performance.

Dressing Conservatively

Choosing attire that is modest, traditional, and not overly flashy, often for professional or formal environments.