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BU.210.620.W5.FA24 Quiz II

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RED Inc. borrowed $30,000 from a local bank on July 1, 2022. Principal and interest are due on June 30, 2023. This note is the company's only interest-bearing debt. On December 31, 2022, RED Inc. made the adjusting entry by debiting interest expense and crediting interest payable for $1,800. What is the annual interest rate on RED Inc.’s note payable?

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The task provides principal P = $30,000, with interest accrued by December 31, 2022 amounting to $1,800 for a 6-month period (July 1 to December 31). To find the annual interest rate r, use t......Login to view full explanation

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