   Chapter 13.I, Problem 17RE ### Contemporary Mathematics for Busin...

8th Edition
Robert Brechner + 1 other
ISBN: 9781305585447

#### Solutions

Chapter
Section ### Contemporary Mathematics for Busin...

8th Edition
Robert Brechner + 1 other
ISBN: 9781305585447
Textbook Problem

# The Freemont Bank offers a business line of credit that has an annual percentage rate of prime rate plus 5.4%, with a minimum of 11%. What is the APR if the prime rate is a .  7%     7+5 .4    =12 .4% b. 10.1%c. 9.25%d. 5%

(a)

To determine

To calculate: The annual percentage rate if the prime rate is 7% where the Freemont Bank proposes a business line of credit that contains an annual percentage rate plus 5.4%, with the lowest of 11%.

Explanation

Given Information:

The prime rate is 7% and the Freemont Bank proposes a business line of credit that contains an annual percentage rate plus 5.4%, with the lowest of 11%.

Calculation:

Consider that the prime rate is 7% and the Freemont Bank proposes a business line of credit that contains an annual percentage rate plus 5.4%, with the lowest of 11%

(b)

To determine

To calculate: The annual percentage rate if the prime rate is 10.1% where the Freemont Bank proposes a business line of credit that contains an annual percentage rate plus 5.4%, with the lowest of 11%.

(c)

To determine

To calculate: The annual percentage rate if the prime rate is 9.25% where the Freemont Bank proposes a business line of credit that contains an annual percentage rate plus 5.4%, with the lowest of 11%.

(d)

To determine

To calculate: The annual percentage rate if the prime rate is 5% where the Freemont Bank proposes a business line of credit that contains an annual percentage rate plus 5.4%, with the lowest of 11%.

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