Frankenstein Enterprises Received Two Notes from Customers for Sales That

Frankenstein Enterprises received two notes from customers for sales that Frankenstein made in 2018. The notes included:
Note A: Dated 5/31/2018, principal of $120,000 and interest due 3/31/2019.
Note B: Dated 7/1/2018, principal of $200,000 and interest at 8% annually, due on 4/1/2019.
Frankenstein had accrued a total of $14,400 interest receivable from these notes in its 12/31/2018 balance sheet.
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The annual interest rate on Note A is closest to:

A) 9.14%.
B) 8%.
C) 9.74%.
D) 9.44%.

Correct Answer:

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