Question: A loan is to be repaid in level installments payable at the end of each year for seven years. The effective annual interest rate on

A loan is to be repaid in level installments payable at the end of each year for seven years. The effective annual interest rate on the loan is 4%. After the fourth payment, the principal remaining is $5,000.

Which of the following is closest to the amount of the loan?

A $10,625

B $10,675

C $10,725

D $10,775

E $10,825

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