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

question 55

Multiple Choice

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

Series

A configuration in which electrical components are connected end-to-end in a single path for the electric current to flow through.

Ampacities

A term referring to the maximum amount of electric current a conductor or device can carry before sustaining immediate or progressive deterioration.

Inductances

A property of an electrical conductor by which a change in current flowing through it induces an electromotive force in both the conductor itself and in any nearby conductors by mutual inductance.

Ambients

Surrounding environmental conditions, such as temperature, pressure, and humidity, affecting the performance and operation of electronic devices.