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. 4.7 percent.
B. 9.4 percent.
C. 9.9 percent.
D. 10.3 percent.
Answer:B
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. 4.7 percent. B. 9.4 percent. C. 9.9 percent. D. 10.3 percent.