pppppp 1. What is the effective interest rate of a simple discount note for $8,000that has an ordinary bank discount rate of 12% for 90 days? Use the stepsabove and make sure to use the right numbers in your last calculation Ⓒround your percentage to tenths place.

The promissory note is a signed document that is issued to raise money. The issuer makes the promise…

Answered: 1. What is the effective interest rate…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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1. What is the effective interest rate of a simple discount note for $8,000 that has an ordinary bank discount rate of 12% for 90 days? Use the steps above and make sure to use the right numbers in your last calculation Ⓒ round your percentage to tenths place.