The Eldorado Corporation's controller prepares adjusting entries only at the end of the fiscal year. The following adjusting entries were prepared on December 31, 2016:

The Eldorado Corporation's controller prepares adjusting entries only at the end of the fiscal year. The foloving adusting entries were prepared on December 31.2016. Debit Interest expense Rent expense Interest receivable Interest payable Prepaid rent Interest revenue 7,200 35,000 500 7,200 35,000 500 Additional information: 1. The company borrowed $120,000 on March 31, 2016. Principal and interest are due on March 31, 2017 This note is the company's only interest-bearing debt. 2. Rent for the year on the company's office space is $60,000. The rent is paid in advance. 3. On October 31, 2016, Eldorado lent money to a customer. The customer signed a note with principal and interest at 6% due in one year Required: 1. What is the interest rate on the company's note payable? nterest rate