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CTP · Question #535
(Topic 6) A company receives proceeds of $1,119,274 from the sale of $1,150,000 worth of commercial paper. The paper is outstanding for 95 days. If a 360-day year is used, the company's annual…
The correct answer is C. 10.40%. See the full explanation below for the reasoning.
Question
- (Topic 6)
A company receives proceeds of $1,119,274 from the sale of $1,150,000 worth of commercial paper. The paper is outstanding for 95 days. If a 360-day year is used, the company's annual interest rate is closest to which of the following?
Options
- A10.13%
- B10.27%
- C10.40%
- D10.54%
How the community answered
(59 responses)- A5% (3)
- B10% (6)
- C83% (49)
- D2% (1)
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