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A loan is repaid in 12 equal annual installments, beginning in 1 year. The effective annual...

A loan is repaid in 12 equal annual installments, beginning in 1 year.

The effective annual interest rate is 3.5%.

The total amount of principal repaid in the 9th through 12th payments is $9,503.

What is the amount of interest paid in the 4th payment? Possible answers are: 725 or 690 or 755 or 395 or 740. Thanks

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Answer #1

Answer is 690 (closest)

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