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NEW QUESTION: 1
Hagar Company's bank requires a compensating balance of 20 percent on a $100,000 loan. If the stated
interest on the loan is 7 percent, what is the effective cost of the loan?
A. 7.00 percent.
B. 8.40 percent.
C. 8.75 percent.
D. 8.18 percent.
Answer: C
Explanation:
Choice "d" is correct. Total interest for the loan is $100,000 * 7% or $7,000. The effective amount
received is $80,000 after the 20% compensating balance. The effective interest is $7,000 / $80,000 =
8 .75%
Choices "a", "b", and "c" are incorrect, per the above calculation.

NEW QUESTION: 2
An HP print head can fire over how many drops per second?
A. 30 thousand
B. 30 trillion
C. 30 million
D. 3 hundred
Answer: B

NEW QUESTION: 3
Which of the following is a documentation of guidelines that are used to create archival copies of important data?
A. Backup policy
B. Security policy
C. User policy
D. Audit policy
Answer: A