Question: A farmer meets his short - term capital needs by establishing a line of credit and borrowing as follows. All the borrowed money plus interest

A farmer meets his short-term capital needs by establishing a line of credit and borrowing as follows. All the borrowed money plus interest is paid back on August 1 when the crop is sold. Calculate the total amount of interest paid, assuming a 3% annual interest rate. Assume interest accrues on only the outstanding balance (ie. interest does not compound).
March 1 $15,000
April 1 $8,000
May 1 $3,000
July 1 $12,000
A.
$320
B.
$1,140
C.
$95
D.
$1,900

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