Question #5 Suppose you are considering a $700,000, 25-year, fully-amortizing loan with 7% annual interest rate. We assume monthly compounding. Assume that the total closing expenses are equal to 3% of the loan amount. After acquiring a property with borrowed funds, if you sell the property after 5 years, then what should be the amortized financing costs in year 5? A) $840 B) $16,800 C) $17,640 D) $18,480 E) $21,000