Use the Present Value tables at the end of Appendix A of your textbook to answer the following questions. Round each portion of your answer to the nearest dollar.

On January 1, 2014, Aggie Company purchased a building for $65,000, making a cash down payment of $5,000 and signing a note requiring eight equal semi-annual payments for the balance. Payments are to be made on June 30 and December 31. The implicit interest rate is 6%.

How much interest expense should Aggie record on the note for the first year?

Date	Cash Payment	Interest Expense	Principle Reduction	Carrying Value

Group of answer choices

$3,702

43,364

$6,447

$3,398

$3,429