On 1 December, Year 1, Bradley Corporation incurs a 15-year $200 million mortgage liability in conjunction with the acquisition of an office building. This mortgage is payable in monthly installments of $2.4 million, which include interest computed at the rate of 12% per year. The first monthly payment is made on 31 December, Year 1.
-Compute the total amount to be paid by Bradley over the 15-year life of the mortgage.
A) $200 million.
B) $562 million.
C) $432 million.
D) $474 million.
Correct Answer:
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