XYZ borrowed $60,000 for one year and signed an 18 percent, interest-bearing note payable.Assuming XYZ has an income tax rate of 45 percent, the net effective rate was:
A)8)1 percent.
B)9)9 percent.
C)18 percent.
D)11.7 percent.

Question

Quizplus · Accepted Answer

The Answer of XYZ borrowed $60,000 for one year and signed an 18 percent, interest-bearing note payable.Assuming XYZ has an income tax rate of 45 percent, the net effective rate was:
A)8)1 percent.
B)9)9 percent.
C)18 percent.
D)11.7 percent.

XYZ Borrowed $60,000 for One Year and Signed an 18