1.On November 1, Year 1, Noble Co. borrowed $88,000 from South Bank and signed a 6%, six-month note payable, all due at maturity. The interest on this loan is stated separately. How much must Noble pay South Bank on May 1, Year 2, when the note matures?

a.$90,640.

b.$89,320.

c.$88,000.

d.$93,280.

2. On November 1, Year 1, Noble Co. borrowed $88,000 from South Bank and signed a 6%, six-month note payable, all due at maturity. The interest on this loan is stated separately. How much interest expense will Noble recognize on this note in Year 2?

a.$2,640.

b.$1,320.

c.$1,760.

d.$5,280.