The Desai Company Just Borrowed $1,000,000 for 3 Years at a Quoted

question 67

Multiple Choice

The Desai Company just borrowed $1,000,000 for 3 years at a quoted rate of 8 percent,quarterly compounding.The loan is to be amortized in end-of-quarter payments over its 3-year life.How much interest (in dollars) will your company have to pay during the second quarter?

• A) $15,675.19
• B) $18,508.81
• C) $21,205.33
• D) $24,678.89
• E) $28,111.66

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