A company lends its supplier 152000 for 3 years at a 8 annua

A company lends its supplier $152,000 for 3 years at a 8% annual interest rate. Interest payments are to be made twice a year. Each interest payment will be for O $18.240 O $12160 O $36,480 $6,080

Solution

D. $6,080

Each interest payment = $152,000 * 8% * 6/12 = $6,080

Each interest payment is equal to 6/12 of the annual interest amount.