Aunt Butch Borrows $19,500 from the Bank at 8 Percent

Multiple Choice

Aunt Butch borrows $19,500 from the bank at 8 percent annually compounded interest to be repaid in 10 equal annual installments. The interest paid in the third year is ________.

A) $1,336.00
B) $1,560.14
C) $2,906.11
D) $1,947.10