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 5%. After the 4th payment the principal remaining is $5,000. Which of the following is closest to the amount of the loan?

$10,625
$10,675
$10,725
$10,775
$10,825

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