Blauker Auto Sales & Service Ltd's Accounts Make $27,740,000 Purchases

Blauker Auto Sales & Service Ltd's accounts make $27,740,000 purchases on credit each year. The level of its accounts payable is $2,660,000. Due to a slowdown in car sales, Blauker would like to extend its accounts payables to 45 days. If Blauker would have to pay 7% per annum for short-term financing, how much interest will the company save in a year by extending its payment period?

A) $16,226
B) $53,200
C) $186,200
D) $239,400
E) $1,757,880