If a Loan of $10,000 Is Paid Back in Equal

question 20

Multiple Choice

If a loan of $10,000 is paid back in equal annual end-of-year payments of $2,570.69 during the next five years, what is the annual interest rate on the loan?

• A) 2%
• B) 5%
• C) 9%
• D) 12%

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Definitions:

Accounts Payable Clerk

A professional responsible for managing a company's outgoing bills and invoices, ensuring payments are made on time and records are kept.

Cheque Signing Authority

The power granted to an individual or individuals within an organization to sign checks on behalf of the company.

Internal Auditors

Professionals who conduct audits within an organization to review its operations, processes, and financial practices for efficiency, effectiveness, and compliance.

Internal Controls

Internal controls are processes and procedures implemented by a company to ensure the integrity of financial and accounting information, promote accountability, and prevent fraud.