Question: Kenneth's Arrows and Bows borrows $14,000 for one year at an 7% annual interest rate. What is the effective rate of interest if the loan

Kenneth's Arrows and Bows borrows $14,000 for one year at an 7% annual interest rate. What is the effective rate of interest if the loan is discounted?

Note: Use 360 days in a year.

Multiple Choice

Less than 6.6%

More than 6.6% but less than 7.7%

More than 7.7% but less than 8.6%

More than 8.6%

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