Suppose You Take Out a $10,000 Loan at a 6

Multiple Choice

Suppose you take out a $10,000 loan at a 6% nominal annual rate.The terms of the loan require you to make 12 equal end-of-month payments each year for 4 years,and then an additional final (balloon) payment of $4,000 at the end of the last month.What will your equal monthly payments be?

A) $137.96
B) $145.22
C) $152.86
D) $160.91