Calculate the interest rate for a promissory note with the following information: ⚫ Principal = $5,000 • Term = 90 Days • • Interest = $125 Use 360-day year

Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter9: Accounting For Receivables
Section: Chapter Questions
Problem 21MC: A customer takes out a loan of $130,000 on January 1, with a maturity date of 36 months, and an...
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Calculate the interest rate solution this general accounting question

Calculate the interest rate for a promissory note with the following
information:
⚫ Principal = $5,000
•
Term = 90 Days
•
•
Interest = $125
Use 360-day year
Transcribed Image Text:Calculate the interest rate for a promissory note with the following information: ⚫ Principal = $5,000 • Term = 90 Days • • Interest = $125 Use 360-day year
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