Problem 7-6 Notes receivable; solving for unknowns [LO7-7 Cypress Oil Company's December 31, 2018, balance sheet listed $720,000 of notes receivable and $20,000 of interest receivable included in current assets. The following notes make up the notes receivable balance: Note 1 Dated 8/31/2018, principal of $320,000 and interest at 15% due on 2/28/2019. Note 2 Dated 6/30/2018, principal of $160,000 and interest due 3/3/2019. Note 3 $250,000 face value noninterest-bearing note dated 9/30/2018, due 3/31/2019. Note was issued in exchange for merchandise. The company records adjusting entries only at year-end. There were no other notes receivable outstanding during 2018 Required: 1. Determine the rate used to discount the noninterest-bearing note. 2. Determine the explicit interest rate on Note 2 3. What is the amount of interest revenue that appears in the company's 2018 income statement related to these notes? 1. Discount rate 2. Interest rate 3. Interest revenue