Jake purchases an annuity at a price of 10,000. The annuity makes payments of 500 at the beginning of every 6 months for 20 years. The payments are reinvested in a fund. The fund earns interest at an annual effective rate i. Interest payments are received every 6 months and reinvested at an nominal rate of 6%, convertible semiannually. Jake realizes an overall effective annual yield of 7% on his original investment over the 20-year period. Find i. (Don't copy others' answers and provide the steps)

A. 5.90

B. 6.05

C. 6.20

D. 6.35

E. 6.50