A firm has notes payable of $1,546,000, long-term debt of $13,000,000, and total interest expense of

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%

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