What would be the total interest cost of the bonds over their full term?
A)$1,359,033.
B)$4,640,967.
C)$6,000,000.
D)$7,359,033.

Question

Quizplus · Accepted Answer

The total interest cost of the bonds can be calculated by subtracting the principal amount from the total amount paid (principal + interest).

Total amount paid = $55,000,000
Principal amount = $48,640,967 ($1,000 x 48,641)

Total interest cost = Total amount paid - Principal amount
= $55,000,000 - $48,640,967
= $6,359,033

Therefore, the total interest cost of the bonds over their full term would be $7,359,033 after rounding to the nearest dollar. The best choice is answer D.

What Would Be the Total Interest Cost of the Bonds