Currie Company Borrowed $20,000 from the Sierra Bank by Issuing

question 180

Multiple Choice

Currie Company borrowed $20,000 from the Sierra Bank by issuing a 10% three-year note. Currie agreed to repay the principal and interest by making annual payments in the amount of $8,042. Based on this information, the amount of the interest expense associated with the second payment would be: (Round your answer to the nearest dollar.)

• A) $730.
• B) $1,396.
• C) $2,000.
• D) $8,042.

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