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Simpson Conglomerates Borrows $12,000 for a Short-Term Purpose

Question 7

Multiple Choice

Simpson Conglomerates borrows $12,000 for a short-term purpose.The loan will be repaid after 120 days,with Simpson paying a total of $12,400.What is the approximate cost of credit using the APY,or annual percentage yield,calculation?


A) 4.33%
B) 10.34%
C) 12.25%
D) 12.46%

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