A Bank Has Agreed to Loan You $10,000 at 11

Multiple Choice

A bank has agreed to loan you $10,000 at 11% for 5 years. You are required to make equal, annual, end-of-year payments that include both principal and interest on the outstanding balance. Determine the amount of these annual payments (to the nearest dollar) .

A) $2,000
B) $3,100
C) $2,706
D) $1,100