Question: On April 1 , 2 0 2 5 , the Fox Co . borrowed $ 1 2 0 , 0 0 0 cash and issued

On April 1,2025, the Fox Co. borrowed $120,000 cash and issued a 9-month, non interest bearing note. The stated discount rate is 5%.Fox Co.'s effective interest rate on the loan is:
Question 48 options:
A)
5%.
B)
Less than 5%.
C)
More than 5%.
D)
10%; twice the discount rate.

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