Auerbach Inc. issued 5% bonds on October 1, 2021. The bonds have a maturity date of September 30, 2031 and a face value of $250 million. The bonds pay interest each March 31 and September 30, beginning March 31, 2022. The effective interest rate established by the market was 7%. How much cash interest does Auerbach pay on March 31, 2022? (Round your answer to 2 decimal places.)

Multiple Choice

• $8.75 million.

• $6.25 million.

• $12.50 million.

• $17.50 million.