Gela Corporation borrows P250,000.00 at 15% percent annual interest. Principal and interest is due in 1 year. What is the effective interest rate? choose the letter of answer a. None b. 15% c. 19% d. 20% e. 21%

Gela Corporation borrows P250,000.00 at 15% percent annual interest. Principal and interest is due in 1 year. What is the effective interest rate? choose the letter of answer a. None b. 15% c. 19% d. 20% e. 21%

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter12: Current Liabilities

Section: Chapter Questions

Problem 15MC: Marathon Peanuts converts a $130,000 account payable into a short-term note payable, with an annual...

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Question

Gela Corporation borrows P250,000.00 at 15% percent annual interest. Principal and interest is due in 1 year. What is the effective interest rate?

choose the letter of answer

a. None
b. 15%
c. 19%
d. 20%
e. 21%

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