The rate of interest that actually is incurred on a note payable is called the: a....

Question

Question

The rate of interest that actually is incurred on a note payable is called the:

a. Face rate

b contract rate

c. Effective rate

d stated rate

Answer 1

Answer #1

Option C is the answer

Effective rate

Effective rate is the rate that is actually incurred on the note payable. On the maturity date, interest along with the principal is payable.

Comment if you face any issues

Answer 2

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