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Your bank offers to lend you $ 1 2 0 , 0 0 0 at an 8 . 2 5 % annual interest rate to

Your bank offers to lend you $120,000 at an 8.25% annual interest rate to start your new business. The terms require you to amortize the loan with 10 equal end-of-year payments. How much interest would you be paying in Year 2?
a. $5,904.06
b. $8,487.08
0 c. $6,642.06
d. $7,011.07
e. $9224.68

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