5. Gilmores Clothes purchased some equipment by issuing a three-year 7% note for $7,000 when the interest rate for an obligation of this nature was 9%. The interest is payable annually. Actuarial information for three periods follows:

	7%	9%
Future amount of 1	1.225043	1.295029
Future amount of annuity of 1	3.214900	3.278100
Present value of 1	0.816298	0.772183
Present value of annuity of 1	2.624316	2.531295

At the date of purchase, what amount should be debited to Equipment?

a.	$7,587.66
b.	$6,716.96
c.	$6,350.66
d.	$6,645.61