Use the Following Information for Questions

Multiple Choice

Use the following information for questions :
On January 1, 2012, Coté Limited issues a $27,232, 5% 3-year note payable. The note calls for three annual payments of $10,000, blended principal and interest. The first payment is to be made on December 31, 2012.
-The total amount of interest that will be paid over the term of the loan is

A) $2,767.
B) $929.69.
C) $10,000.
D) $2,291.29.