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A Firm Has a Line of Credit and Borrows $25,000

Question 33

Multiple Choice

A firm has a line of credit and borrows $25,000 at 9 percent interest for 180 days or half a year.What is the effective rate of interest on this loan if the interest is paid in advance?


A) 9.4 percent
B) 4.7 percent
C) 9.9 percent
D) 10.3 percent

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