The production of Urea, a raw material used as a softening agent in enameling processes, requires 10% less surfactants than other raw good manufacturing processes. PEMCO has borrowed $12 Million to implement a new Urea production line in its Atlanta enamel plant. If the interest rate on the loan is 12% per year (on unrecovered balance) for 5 years, what is the amount of interest payable for year 2?
