On July 1, Shady Creek Resort borrowed $390,000 cash by signing a 10-year, 10.5% installment note requiring equal payments each June 30 of $64,840. What amount of interest expense will be included in the first annual payment?

A. $40,950
B. $39,000
C. $23,890
D. $64,840
E. $366,110


Answer: A

Business

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