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Alden Trucking Company is replacing part of their fleet of trucks by purchasing them under a note agreement with Kenworthy on January 1, 2014. Alden
Alden Trucking Company is replacing part of their fleet of trucks by purchasing them under a note agreement with Kenworthy on January 1, 2014. Alden financed $38,590,344, and the note agreement will require $10.18 million in annual payments starting on December 31, 2014 and continuing for a total of five more years (final payment December 31, 2018). Kenworthy will charge Alden Trucking Company the market interest rate of 10% compounded annually. How much is the 2015 interest expense? |
a. $4,072,000.
b. $3,350,034.
c. $3,226,938.
d. $2,841,034.
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