Accounting Period Year 1 Principal balance January 1 Cash Payment $ 424,000 $ 56,000 Required A Required: a. What is the annual rate of interest charged on this loan? b. Using the horizontal financial statements model, record the appropriate amounts for the following two events: (1) January 1, Year 1, issue of the note payable. (2) December 31, Year 1, payment on the note payable. Complete this question by entering your answers in the tabs below. Required B Applied to Applied to Interest Principal $ 39,040 $ 16,960 What is the annual rate of interest charged on this loan? Annual rate of interest %

a. What is the annual rate of interest charged on this loan? b. Using the horizontal financial statements model, record the appropriate amounts for the following two events: (1) January 1 , Year 1 , issue of the note payable. (2) December 31, Year 1, payment on the note payable. Complete this question by entering your answers in the tabs below. What is the annual rate of interest charged on this loan