Your Bank Offers to Lend You $114,400 at an 8

Multiple Choice

Your bank offers to lend you $114,400 at an 8.5% annual interest rate to start your new business.The terms require you to amortize the loan with 10 equal end-of-year payments.How much interest would you be paying in Year 2?

A) $7,254.82
B) $8,161.67
C) $8,615.10
D) $9,068.53
E) $10,428.81