What is the effective interest rate on a 3-month, noninterest-bearing note with a stated rate of 12% and a maturity value of $200,000?
A) 12.36%.
B) 12.00 %.
C) 11.46%.
D) 3.00%.$200,000 12% 3/12 = $6,000 $6,000/($200,000 $6,000) = 3.09%
3) 09% 12/3 = 12.36%
Correct Answer:
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