Question 2: You are borrowing $125,000 for 30 years at 9% nominal annual interest compounded monthly. How much must your monthly payments be if you will completely retire the loan over the 30-year period (i.e., what is the level payment annuity with a present value of $80,000)?

A

$1,049

B

$644

C

$1,097

D

$1,006