What Is the Effective Interest Rate (Rounded) on a 3-Month

question 81

Multiple Choice

What is the effective interest rate (rounded) on a 3-month, noninterest-bearing note with a stated rate of 12% and a maturity value of $200,000?

• A) 12.4%.
• B) 13.6%.
• C) 11.5%.
• D) 3.1%.

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