Question
On October 31, 2018, Almond Builders borrowed $16 million cash and issued a 7-month, noninterest-bearing note. The loan was made by Star Finance Co. The
On October 31, 2018, Almond Builders borrowed $16 million cash and issued a 7-month, noninterest-bearing note. The loan was made by Star Finance Co. The stated discount rate is 8%. Almond's effective interest rate on this loan is:
Group of answer choices
Less than the stated discount rate of 8%.
Unrelated to the stated discount rate of 8%.
Equal to the stated discount rate of 8%.
None is correct.
More than the stated discount rate of 8%.
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Yes You Can Get A Financial Life
Authors: Ben Stein, Phil Demuth
1st Edition
1401911250, 978-1401911256
