On July 1, Shady Creek Resort borrowed $400,000 cash by signing a 10-year, 11% installment note requiring equal payments each June 30 of $67,921. What amount of interest expense will be included in the first annual payment?

A. $376,079
B. $23,921
C. $40,000
D. $67,921
E. $44,000


Answer: E

Business

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