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question 32

Multiple Choice

[The following information applies to the questions displayed below.]
On March 1,Hugh Corporation plans to borrow $550,000 from the Scotland State Bank by signing a 12%,15-year note payable.The note calls for 180 monthly payments of $6,000,which includes both interest and principal components.
-Hugh's budgeted interest expense for March is:

• A)$5,000.
• B)$2,444.
• C)$5,500.
• D)$6,000.