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Moluf Corporation Receives a 5-Year, $20,000 Zero-Interest-Bearing Note, the Present

Question 43

Multiple Choice

Moluf Corporation receives a 5-year, $20,000 zero-interest-bearing note, the present value of which is $11,348.60. What is the implicit interest rate that equates the total cash to be received to the present value of the future cash flows?


A) 8%
B) 9%
C) 10%
D) 12%

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