You plan to borrow $37,000 at a 7.5% annual interest rate. The terms require you to amortize the loan with 7 equal end-of-year payments. How much interest would you be paying in Year 2?

Select the correct answer.

a. $2,459.20

b. $2,462.40

c. $2,460.80

d. $2,464.00

e. $2,456.00