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You have just arranged for an eight-year bank loan for $350,000 at an interest rate of...

You have just arranged for an eight-year bank loan for $350,000 at an interest rate of 12% p.a.
with interest compounded semi-annually. The loan will be repaid in 16 equal semi-annual
installments and the first payment will be due six months from today. Assuming end-of-theperiod
cash flows, the interest paid in period 2 will be closest to:
a) $13,633.
b) $14,451.
c) $20,182.
d) $21,000.
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