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Saturday, July 25, 2015

Horizon Telecom sold $300,000 worth of 120-day commercial paper for $298,000

E16–5 Horizon Telecom sold $300,000 worth of 120-day commercial paper for $298,000. What is the dollar amount of interest paid on the commercial paper? What is the effective 120-day rate on the paper?

Click here for the solution: Horizon Telecom sold $300,000 worth of 120-day commercial paper for $298,000