Q) On 1 February 2021, a parent made a long-term loan of £40 million to its subsidiary. The interest on the loan is 8% per annum and is payable every six months, starting 1 May, 2021. The year end is...

Q) On 1 February 2021, a parent made a long-term loan of £40 million to its
subsidiary. The interest on the loan is 8% per annum and is payable every six
months, starting 1 May, 2021. The year end is 30 April 2021. The group
finance charges figure for the period is:
a) Increased by £800,000
b) Decreased by £800,000
c) Increased by £3,200,000
d) Decreased by £3,200,00

Which of the above option is correct and why