Question: Cash is borrowed on a 2-month note payable. If the interest cost to borrow is RO400, what is the actual interest rate on this note?

Cash is borrowed on a 2-month note payable. If the interest cost to borrow is RO400, what is the actual interest rate on this note?

a. 10.00%

b. 12.00%

c. 22.50%

d. 20.00 %

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