A Construction Company Takes a Loan of $1,531,000 to Cover

question 62

Multiple Choice

A construction company takes a loan of $1,531,000 to cover the cost of a new grader. If the interest rate is 6.75% APR, and payments are made monthly for five years, what percentage of the outstanding principal does the company pay in interest each month?

• A) 0.56%
• B) 5.63%
• C) 0.51%
• D) 0.61%
• E) 0.66%

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