? Secure | https//newconnect.mheducation.com/flow/connect.html Ch. 7 Assessment

Question

? Secure | https//newconnect.mheducation.com/flow/connect.html Ch. 7 Assessment Help Frankenstein Enterprises received two notes from customers for sales that Frankenstein made in 2018. The notes included Note A: Dated 5/31/2018, principal of $120,000 and interest due 3/3/2019 Note B: Dated 7/1/2018, principal of $200,000 and interest at 8% annually, due on 4/1/2019 Frankenstein had accrued a total of $14,400 interest receivable from these notes in its 12/31/2018 balance sheet 025839)The annual interest rate on Note A is closest to: eBook Multiple Choice 974%. 0914% 8%

Explanation / Answer

Second option is correct (9.14%)

Total accrued interest $        14,400 Less: Interest on note B=200000*8%*6/12 $          8,000 Interest accrued on Note A (7 months) $          6,400 12 months interest on Note A=6400*12/7 $        10,971 Interet rate on note A=10971/120000 9.14%

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