Basics of Engineering Economy 2nd Edition by Anthony Tarquin,Leland Blank

Exercise 4

The production of polyamide from raw materials of plant origin, such as castor oil, requires 20% less fossil fuel than conventional production methods. Darvon Chemicals borrowed $6 million to implement the process. If the interest rate on the loan is 10% per year for 10 years, what is the amount of interest for year 2