Multiple Choice
Alden Trucking Company is replacing part of its fleet of trucks by purchasing them under a note agreement with Kenworthy on January 1,2019.Alden financed $37,908,000,and the note agreement will require $10 million in annual payments starting on December 31,2019 and continuing for a total of four more years (final payment December 31,2023) .Kenworthy will charge Alden Trucking Company the market interest rate of 10% compounded annually.
-What is the amount of the 2020 interest expense?
A) $3,169,880.
B) $3,290,800.
C) $4,000,000.
D) $2,790,800.
Correct Answer:
Verified
Correct Answer:
Verified
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