You Borrow $4000 on August 2nd This Year

Multiple Choice

You borrow $4000 on August 2nd this year. Your demand loan carries an interest rate of 8.41%. You make partial payments of $500 on September 15th and $1575 on October 17th. You want to make a final payment to pay off the remaining outstanding balance on November 21st. What is the size of your final payment? Use the declining balance method.

A) $2080.18
B) $2018.80
C) $2208.18
D) $2007.72
E) $2777.72