Ten years ago, Mike took out a 20-year $110, 000 loan at an annual effective rate of interest of 5%. He was paying the loan by making level payments at the end of each year. Now, he refinances the...

Ten years ago, Mike took out a 20-year $110, 000 loan at an annual effective rate of interest of 5%. He was paying the loan by making level payments at the end of each year. Now, he refinances the loan so as to pay it off in 20 years from with level payments made at the end of the year at an annual effective rate of interest of 4%. Calculate the revised annual payment. (A) $5, 015 (B) $5, 469 (C) $5, 923 (D) $6, 377 (E) $6, 831