Grouper Inc. borrowed $67,100 on November 1, 2020, by signing a $68,039, three-month, zero-interest- bearing note. Calculate the effective interest charged on the note.

Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter13: Long-term Liabilities
Section: Chapter Questions
Problem 1PA: On January 1, 2018, King Inc. borrowed $150,000 and signed a 5-year, note payable with a 10%...
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Grouper Inc. borrowed $67,100 on
November 1, 2020, by signing a
$68,039, three-month, zero-interest-
bearing note.
Calculate the effective interest
charged on the note.
Transcribed Image Text:Grouper Inc. borrowed $67,100 on November 1, 2020, by signing a $68,039, three-month, zero-interest- bearing note. Calculate the effective interest charged on the note.
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