On 1/1/2010, Smith borrows $5,000$5,000 at the nominal annual interest rate of 4%4% compounded semiannually.

On 1/1/2012, Smith borrows an additional $3,000$3,000 at the nominal annual interest rate of 5%5% compounded semiannually. No interest or principal payments are made on either loan prior to 2014.

On 1/1/2014, the two loans are consolidated and subsequent interest is charged at a nominal annual rate of 6%6% compounded semiannually. Smith repays the loans with level semiannual payments beginning 7/1/2014 and ending 1/1/2020.

In which of the following ranges is the amount of each of these payments?

Possible Answers

A

<$900 <$900

B

$900 but<$925 $900 but<$925

C

$925 but<$950 $925 but<$950

D

$950 but<$975 $950 but<$975

E

$975