Question: Kate Davidson signed a simple discount note for $9,000. The discount rate is 5%, and the term of the note is 18 months. What is

Kate Davidson signed a simple discount note for $9,000. The discount rate is 5%, and the term of the note is 18 months. What is the effective interest rate? (Round to the nearest tenth percent)

a. 3.8%

b. 4.9%

c. 5.4%

d. 6.2%

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