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You are taking out a $20,000 loan to be paid out over 10 years in ten equal annual payments. Each payment will be made at

You are taking out a $20,000 loan to be paid out over 10 years in ten equal annual payments. Each payment will be made at the end of each year. Suppose that the interest rate of this loan is 4 percent (compounded annually). What is the outstanding amount of the loan principal right after the first annual payment? Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer.

a $19,344 b $18,745 c $18,535 d $18,334 e $17,745

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