Question
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
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
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