You are borrowing money to buy a sound system. If you can make payments of $400 per quarter starting three months from now at an interest rate of 4% per annum, how much will you be able to borrow for the sound system today if you finance the amount over five years?

Select one:

a. $7,218.22

b. $1,780.73

c. $6,049.40

d. $21,719.63