The Effective Interest on a 12-Month, Zero-Interest-Bearing Note Payable of $300,000

question 71

Multiple Choice

The effective interest on a 12-month, zero-interest-bearing note payable of $300,000, discounted at the bank at 10% is

• A)10.87%.
• B)10%.
• C)9.09%.
• D)11.11%.

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