Fornelli Corporation Borrowed $800,000 from Central Bank on May 31

Multiple Choice

Fornelli Corporation borrowed $800,000 from Central Bank on May 31, 2016. The three-year, 7% note required annual payments of $304,840 beginning May 31, 2017. The total amount of interest to be paid over the life of the loan is

A) $56,000.
B) $114,520.
C) $223,470.
D) $168,000.