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Smyth Company Borrows $5,000 by Giving the Bank Its Own

Question 73

Multiple Choice

Smyth Company borrows $5,000 by giving the bank its own 8%,90-day note.The bank discounts the interest.The effective interest rate is

A) 7) 84%.
B) 8) 00%.
C) 8) 16%.
D) 8) 84%.

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