Question: AAA Co. is looking to replace its old equipment. A supplier offers AAA Co. a great deal. It will sell new equipment to AAA for

AAA Co. is looking to replace its old equipment. A supplier offers AAA Co. a great deal. It will sell new equipment to AAA for $85,000 on January 1, 2023, and issue a seven-year installment note payable at 6% interest. Installment payments of $7,525 are made semi-annually. How much is the total interest expense for the first payment of the note? Select one: a. $2,550 b. $7,525 c. $4,975 d. $2,401

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