Alden trucking company is replacing part of their fleet of


Alden Trucking Company is replacing part of their fleet of trucks by purchasing them under a note agreement with Kenworthy on January 1, 2014. Alden financed $39,052,588, and the note agreement will require $10.04 million in annual payments starting on December 31, 2014 and continuing for a total of five more years (final payment December 31, 2018). Kenworthy will charge Alden Trucking Company the market interest rate of 9% compounded annually. How much is the 2015 interest expense?

$3,614,400.

$2,611,133.

$3,062,933.

$2,927,459.

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Financial Management: Alden trucking company is replacing part of their fleet of
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