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:

Consumption of Alcohol

The act of drinking beverages that contain ethanol, which can range from social drinking to harmful levels of consumption that lead to health issues and social problems.

1840

Signifies the year, which in historical context, could be related to specific events, developments, or figures significant to that time.

Colonization

The process by which a country takes control over foreign territories to exploit them economically, often involving the settlement of its own population in the new territory.

Freed Slaves

Individuals who were released from the condition of slavery, gaining personal liberty and rights.