11.3 Grummet Company is acquiring a new wood lathe with a cash purchase price of $80,000. The Wood Master Industries (the manufacturer) has agreed to accept $23,500 at the end of each of the next 4 years.

Based on this deal, how much interest will Grummet pay over the life of the loan?

A. $94,000 B. $80,000 C. $23,500 D. $14,000