Question

A $$10,000$ loan with interest at $5\%$ per year, compounded annually, is scheduled to be repaid in fifteen equal annual installments, the first payment after one year. At the end of year $2,$ the borrower makes an additional payment of $$1,000.$ Level annual installments in the original amount are continued until a final partial payment will liquidate the loan.

In which of the following ranges is the amount of the final payment?

Possible Answers

$$$$150$

$$$$150$ but $$$$350$

$$$$350$ but $$$$550$

$$$$550$ but $$$$750$

$$$$750$