A firm has liabilities of $3,000 in one year and $1,200 in two years. The firm exactly matches its liabilities by issuing the following loans which are to be repaid with level annual payments:

1-year loan of $X, with annual effective rate of 5%

2-year loan of $Y , with annual effective rate of 6%

Find the sum X + Y .

(A) 3850

(B) 3914

(C) 3925

(D) 3929

(E) 3978