Keck industries is planning to issue $7 million in bonds with a six-year maturity date and an annual rate of 5.4 percent. how much will they pay in interest over the life of the bonds?

The equation to be used is



where P is the present worth equal to $7 million, i is the annual interest rate of 5.4% and n is the number of years which is equal to 6 years. Then,



Therefore, the Keck Industries will pay $2,330,733 over the life of the bonds.

Dis the solution here