On January 1, New York Company borrowed $180,000 to purchase machinery and agreed to pay 5% interest for 6 years on an installment note. Each note payment is due on the last day of the year. What is the total interest expense over the life of the loan? A. $32,779 B. $54,000 C. $33,657 D. $35,463

Principles of Accounting Volume 1
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ISBN:9781947172685
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Chapter13: Long-term Liabilities
Section: Chapter Questions
Problem 7MC: On January 1 a company issues a $75,000 bond that pays interest semi-annually. The first interest...
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On January 1, New York Company borrowed $180,000 to purchase machinery and
agreed to pay 5% interest for 6 years on an installment note. Each note payment is due
on the last day of the year. What is the total interest expense over the life of the loan?
A. $32,779
B. $54,000
C. $33,657
D. $35,463 

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