You have just arranged for an eight-year bank loan for $350,000 at an interest rate of 12% p.a.

with interest compounded semi-annually. The loan will be repaid in 16 equal semi-annual

installments and the first payment will be due six months from today. Assuming end-of-theperiod

cash flows, the interest paid in period 2 will be closest to:

a) $13,633.

b) $14,451.

c) $20,182.

d) $21,000.