On September 1, 2018, Hiker Shoes issued a $100,000, 8-month, noninterest-bearing note. The loan was made by Second Commercial Bank where the stated discount rate is 9%. Hiker's effective interest rate on this loan (rounded) is:
A) 9.0%.
B) 9.5%.
C) 9.6%.
D) 9.7%.
Correct Answer:
Verified
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