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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