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

question 91

Multiple Choice

The effective interest on a 12-month, zero-interest-bearing note payable of $300,000, discounted at the bank at 7% is

• A) 6.54%.
• B) 7%.
• C) 14.29%.
• D) 7.53%.

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