A manufacturing company is considering

the purchase of new machinery to increase its

production capacity. The company has identified a

new machine that costs $$500,000$ and is expected

to increase production by $20\%.$ The company

expects to sell the additional products for $$600,000,$

resulting in a net profit of $$100,000.$ The company

can finance the purchase through a bank loan with

an interest rate of $5\%$ over a five$-$year term. What is

the total interest expense for the bank loan over the

five$-$year term?

a$.$ $$100,000$

b$.$ $$125,000$

c$.$ $$150,000$