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Question
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 APR, or annual percentage rate, calculation?A) 3.33%
B) 4.00%
C) 10.00%
D) 11.75%
Answer
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