The effective interest on a 12-month, zero-interest-bearing note payable of $300,000, discounted at the bank at 10%

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The effective interest on a 12-month, zero-interest-bearing note payable of $300,000, discounted at the bank at 10% is:

a. 10.87%.

b. 10%.

c. 9.09%.

d. 11.11%.

Related Book For answer-question

Accounting

ISBN: 978-0324662962

23rd Edition

Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren

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Posted Date: May 26, 2022 05:33 AM

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The effective interest on a 12-month, zero-interest-bearing note payable of $300,000, discounted at the bank at 10%

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Correct option is D Note payable at note paya... View the full answer

Accounting

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