A Firm Has Notes Payable of $1,546,000, Long-Term Debt of $13,000,000

Multiple Choice

A firm has notes payable of $1,546,000, long-term debt of $13,000,000, and total interest expense of $1,300,000. If the firm pays 8 percent interest on its long-term debt, what rate of interest does it pay on its notes payable?

A) 8.2%
B) 13.1%
C) 16.8%
D) 18.0%
E) 15.3%