On December 1, Year 1, Bradley Corporation incurs a 16-year $180,000 mortgage liability in conjunction with the acquisition of an office building. This mortgage is payable in monthly installments of $1,200, which include interest computed at the rate of 5% per year. The first monthly payment is made on December 31, Year 1.

Over the 16-year life of the mortgage, the total amount Bradley will pay for interest charges is:

$192,000.

$230,400.

$180,000.

$50,400.

On December 1, Year 1, Bradley Corporation incurs a 16-year $180,000 mortgage liability in conjunction with the acquisition of an office building. This mortgage is payable in monthly installments of $1,200, which include interest computed at the rate of 5% per year. The first monthly payment is made on December 31 , Year 1. Over the 16-year life of the mortgage, the total amount Bradley will pay for interest charges is: Multiple Choice $192,000. $230,400. $180,000 $50,400