John Flemming has been shopping for a loan to finance the purchase of a used car. He has found three possibilities that seem attractive and wishes to select the one with the lowest interest rate. The information available with respect to each of the three $5,000 loans is shown in the following table.

a. Determine the interest rate associated with each of the loans.
b. Which loan should Johntake?

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Loan Principal Annual payment Term (ycars) $5,000 5,000 5,000 $1,352.81 1,543.21 2,010.45