JK's Is Borrowing $132,000 for Three Years at an APR

question 115

Multiple Choice

JK's is borrowing $132,000 for three years at an APR of 7.6 percent.The loan calls for the principal balance to be reduced by equal amounts over the life of the loan.Interest is to be paid in full each year.The payments are to be made annually at the end of each year.How much will be paid in interest over the life of this loan?

• A)$10,032
• B)$30,096
• C)$12,840
• D)$20,064
• E)$18,667