Question: 1. Jim's Electrical is offered a $400,000 line of credit for six months at an APR of 9%. The bank requires that the firm

1. Jim's Electrical is offered a $400,000 line of credit for six

1. Jim's Electrical is offered a $400,000 line of credit for six months at an APR of 9%. The bank requires that the firm keep an amount equal to 5% of the loan principal in a non-interest-earning account with the bank as long as the loan remains outstanding. What is the actual six-month interest rate paid, expressed as an EAR? A. 9.70% % B. 3.2% OC. 24.3% XD. 5.0%

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