Husky Corporation Is Looking to Purchase a Building Costing $500,000

Multiple Choice

Husky Corporation is looking to purchase a building costing $500,000 by agreeing to make payments every three months for the next five years; the first payment is due three months after the purchase date.Husky's incremental borrowing rate is 12%.How much will each of the payments be?

A) $28,000
B) $66,940
C) $37,981
D) $33,608