On January 1, 2016, a public company sells e merchandise for $620,000. It receives $50,000 cash and accepts a note receivable for the remainder. The note face value is due

in 4 years. The customers borrowing rate is unknown.

The merchandise cash price is $550,000.

Calculate the imputed interest rate in this transaction (calculate ratios to 2 decimal places,

do not round).

a) 5.73%

b) 5.52%

c) 3.32%

d) 3.04%

e) 0.89%

f) 0.76%