A debt of $8000 with interest at j₄ = 10% is to be amortized by payments of $500 at the end of each three month period for as long as necessary. A final smaller payment will be calculated so the loan will be exactly repaid? It turns out that 20 full payments of $500 and one smaller concluding payment are needed to fully pay off the loan. What is the outstanding balance after 12 payments have been made?

• A.

  $3585.07

• B.

  $3921.66

• C.

  $3861.33

• D.

  $3985.43