ToysToys Corporation wants to borrow $500,000 for one month. It uses its inventory as collateral for a 16% (APR) loan, under a warehouse arrangement where the warehouse fee is $14,000, paid at the end of the month
What is the EAR of this loan for ToysToys?
A) 4.1%
B) 15.4%
C) 45.8%
D) 62.6%
Answer: D
Business
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Indicate whether the statement is true or false
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There are 10,000 units in Work in Process inventory for the Mixing Department at the end of the month. The units were 60% complete for conversion costs. What are the equivalent units for conversion costs using the weighted-average method?
A. 600 B. 4,000 C. 6,000 D. 10,000
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