Cromwell is acquiring some land for $1,200,000 in exchange for semiannual payments of $75,000 at an APR of 8.6 percent compounded semiannually. How many years will it take Cromwell to pay for this purchase?

a.

12.00 years

b.

13.83 years

c.

12.55 years

d.

11.10 years

e.

11.92 years