6. Paul lends 8000 to Peter. Peter agrees to pay it back in 10 annual installments at 7% with the first payment due in one year. After making 4 payments, Peter negotiates to pay off the debt with 4 additional annual payments. The new payments are calculated so that Paul will get a 6.5% annual yield over the entire 8-year period. Determine how much money Peter saved by negotiating. A. Less than 550 B. At least 550, but less than 600 C. At least 600, but less than 650 D. At least 650, but less than 700 E. At least 700 7. You take out a loan which will be repaid with 10 annual payments at an annual effective interest rate of 6%. The first payment will be at time 1. The first four payments are 850 each and the last six are 1250 each. What is the outstanding loan balance immediately after the 6th payment? A. Less than 4,230 B. At least 4,230, but less than 4,330 C. At least 4,330, but less than 4,430 D. At least 4,430, but less than 4,530 E. At least 4,530 8. A 1000 loan is to be repaid with equal payments at the end of each year for 20 years. The principal portion of the 13th payment is 1.5 times the principal portion of the 5th payment. Calculate the total amount of interest paid on the loan. A. 631 B. 641 C. 651 D. 661 E. 671