Tangshan Mining borrowed $100,000 for one year under a revolving credit agreement that authorized and guaranteed the firm access to $200,000
The revolving credit agreement had a stated interest rate of 7.5 percent and charged the firm a 1 percent commitment fee on the unused portion of the agreement. Based on this information, the effective annual interest rate on the loan is ________.
A) 7.5%
B) 8.0%
C) 8.5%
D) 9.0%
C
Business
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A subordinate loan that includes the amount of other loans is known as a(n)
A. purchase money loan. B. wraparound loan. C. open-end loan. D. usurious loan.
Business
The land description method that makes reference to sections, townships, and ranges is the:
A. government survey method B. recorded map method C. metes and bounds method D. Torrens system
Business