The interest rate on a straight note in the amount of $27,000 that calls for interest payments of $573.75 each quarter would most nearly be:
A. 6.6%
B. 7.2%
C. 8.6%
D. 9.2%
$573.75 X 4 = $2295 interest for one year
$2295 divided by $27,000 = 0.85 or 8.5%
8.6% is closest