A car dealer offers to sell a car for 10,000. The current market loan rate is a nominal rate of interest of 12% per annum, compounded monthly. As an inducement, the dealer offers 100% financing at an effective annual interest rate of 5%. The loan is to be repaid in equal installments at the end of each month over a four-year period. Calculate the cost to the dealer of this inducement.

(A) 700 (B) 900 (C) 1100 (D) 1300 (E) 1500

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