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Question - Expanding Corporation financed a $500,000 expansion by mortgaging their head office building for seven years. They negotiated a rate of 5% per annum. They will make equal annual payments at the end of the year.
Note: if needed, complete the amortization table for the mortgage using the effective interest method.
How much is the interest expense in Year 3?
$13,072
$24,954
$19,181
$9,960
None of the other alternatives are correct.
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