Answer the following questions. (Round interest rate to 0 decimal places, e.g. 7%.) (1) If the note has been outstanding 3 months, what is the annual interest rate on that note? Interest Expense: $511 Notes Payable: $4,700
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Answer the following questions. (Round interest rate to 0 decimal places, e.g. 7%.)
(1) If the note has been outstanding 3 months, what is the annual interest rate on that note?
Interest Expense: $511
Notes Payable: $4,700
Given information
Interest expenses = $511
Notes payable ( p ) = $4700
Duration (n) = 3 months
First find out monthly interest expense and then divide it by principle amount.
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