A company issued 5-year, 7% bonds with a par value of $90,000. The company received $87,947 for the bonds. Using the straight-line method, the amount of interest expense for the first semiannual interest period is:

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this is the formula: v = the value of investment at the end of the time period

p = the principal amount (the initial amount invested)

r = the annual interest rate

n = the annual frequency of compounding (how many times a year interest is added)

t = the number of years the money is invested

^ means raise to the power of