CIBC Approved a $10 000 Personal Line of Credit on a Demand

question 12

Multiple Choice

CIBC approved a $10 000 personal line of credit on a demand basis to Tara, who takes an advance of $2240 on 1st of every month to settle her monthly budget. She settles her loan when she receives her pay on 15th of every month. Interest at the rate of prime (3%) plus 2.75% is charged to the account at the bank on the 15th of each month. What is Tara's payment each month to settle the loan?

• A) $2245.29
• B) $5.29
• C) $2240
• D) $2368.80
• E) $2263.63

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Definitions:

Psychological Effects

The mental and emotional outcomes or changes that occur in individuals as a result of events, experiences, or actions.

Prejudice

Bias or discrimination against an individual or group without just grounds or before acquiring sufficient knowledge.

Stigma

The disapproval of, or discrimination against, individuals or groups based on perceivable social characteristics that serve to distinguish them from other members of a society.

Minority Group

A sociodemographic group that is smaller in numbers or has less power or representation compared to the dominant or majority group in a society.