You plan to borrow $38,000 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. $2,515.47

b. $2,510.37

c. $2,530.77

d. $2,520.57

e. $2,525.67