What is the effective interest rate (rounded) on a 3-month, noninterest-bearing note with a stated rate of 12.3% and a maturity value of $203,000? (Do not round intermediate calculations. Round final answer to one decimal place, e.g., 0.123 as 12.3%.)

Multiple Choice

• 11.7%.

• 12.7%.

• 13.7%.

• 12.3%.