Question: On October 3 1 , 2 0 2 4 , simeon Builders borrowed $ 1 6 million cash and issued a 7 - month, noninterest

On October 31,2024, simeon Builders borrowed $16 million cash and issued a 7-month, noninterest-bearing note. The loan was made by Star Finance Company. The stated discount rate is 8%. Simeon's effective interest rate on this loan is:
Multiple Choice
unrelated to the stated discount rate of 8%.
less than the stated discount rate of 8%.
equal to the stated discount rate of 8%.
On October 3 1 , 2 0 2 4 , simeon Builders

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