Question #11700387

What is the total amount of interest expense Rodeo will pay over the life of the loan?

On January 1, 2013, Rodeo Warehouse purchased new equipment for its distribution center. The equipment cost $450,000; Rodeo paid $50,000 as a down payment and is required to pay $26,886 each six months for the next 10 years. Rodeo's annual cost of borrowing is 6%. What is the total amount of interest expense Rodeo will pay over the life of the loan? a.$131,140 b.$137,720 c.$181,140 d.$537,720

2013-11-10 19:13:45

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