On March 1, 2016, Mandau Services issued a 7% long-term notes payable for $21,000. It is payable over a 3-year term in $7,000 principal installments on March 1 of each year, beginning March 1, 2017. Each yearly installment will include both principal repayment of $7,000 and interest payment for the preceding one-year period. What is the amount of total cash payment that Mandau will make on March 1, 2017?

(a) 7000.00

(b) 8470.00

(c) 21,000.00

(d) 7735.00

Please show how you came up with answer