A loan of 4,000 is being repaid in 20 years by annual installments of 200, plus interest at 10% per annum, beginning in 1 year.

Immediately after the 2^nd installment is paid, the loan is sold to an investor.

Determine the price paid by the investor to earn an annual effective rate of 5%. Possible answers are: 4,465 or 5,195 or 4,790 or 3,600 or 4,185. Thanks