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Smyth Company Borrows $10,000 by Giving the Bank Its Own

Question 113

Multiple Choice

Smyth Company borrows $10,000 by giving the bank its own 12%,60-day note.The bank discounts the interest.The effective interest rate is

A) 12.84%.
B) 12.24%.
C) 12.00%.
D) 12.42%.

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