You are given the following:

(i) Loan repayment period: 5 years.

(ii) Beginning loan amount: $75,000. (

iii) Two repayment options: (a) Level annual payments at the beginning of each year. (b) Level semi-annual payments at the end of each 6-month period.

(iv) A = annual payment under Option 1.

(v) B = total payments in a year under Option 2.

(vi) d (4) = 0.076225.

Calculate the absolute value of A B. Show Work.

A. 360

B. 560

C. 920

D. 970

E. 1030