You Borrow $42,500 Over a Nine Year Term

question 86

Multiple Choice

You borrow $42,500 over a nine year term.Your bank charges an annual rate of 10%.If the loan is repayable in equal end-of-period,annual payments,then what is the loan payment?

• A) $7,379.72
• B) $7,966.37
• C) $6,916.68
• D) $6,641.75
• E) $8,117.70

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