Ines Corporation Bought a New Machine and Agreed to Pay

Multiple Choice

Ines Corporation bought a new machine and agreed to pay for it in equal annual instalments of $10,000 at the end of each of the next four years.The payments include both interest and principal.The rate of interest for this transaction is 8%.The total amount of interest that Ines will pay is closest to?

A) $2,963
B) $3,200
C) $6,879
D) The interest cost can't be determined.