Use the following information for questions 7 and 8: How to calculate Implicit interest rate?

On November 1, 2016, Super Company borrowed $9.8 million cash from Super Bank by issuing a $10 million, 3-month, noninterest-bearing note. Based on the information provided, please answer the following two questions (base your calculation on the number of months).

The implicit interest rate on this note is?

2.04%

8.16%

8%

2%

8.How much interest expense should Super accrue at the end of 2016?

1 point

$0.133 million

It cannot be determined.

$0.131 million

$0.2 million