Fred Purchased a Farm with a Down Payment of $8,500

Multiple Choice

Fred purchased a farm with a down payment of $8,500 and 48 semi-annual payments of $3,000. The first of these payments is to be made two years after the date of purchase. What was the purchase price of the farm if the interest rate charged on the balance is 14% compounded semi-annually?

A) $41,191.42
B) $31,424.74
C) $42,124.47
D) $39,924.74
E) $49,691.42