1. On July 1, 20x4, you borrow $4760470 from a bank. The bank requires that you repay the loan as follows: each 6 months, one-tenth of the principal balance must be repaid plus interest. The interest rate on the loan is 7%. What is the interest expense for the year ended December 31, 20x4?

Select one:

a. $166616

b. $333233

c. $5456028

d. $249925

2. On July 31, 20x1, the McGyver Company borrowed $654535 from one of its customers and issued a note payable for the amount. The interest, payable annually is 7%. The balance of the note is payable on July 31, 20x21. The companys year-end is December 31.

What is the cash outflow on the notes payable at July 31, 20x2?

Select one:

a. $ 0

b. $ 26727

c. $ 45817

d. $ 19091