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Pipeline Pharmaceuticals Has a One-Year $2 Million Line of Credit

Question 80

Multiple Choice

Pipeline Pharmaceuticals has a one-year $2 million line of credit at an interest rate of 5% (EAR) .The loan has a loan origination fee of 2%.What is the actual interest rate paid?


A) 7%
B) 7.14%
C) 5%
D) 7.1%
E) 5.9%

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