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4. If you borrow $25,000 today and promise to pay back $77,646.21 at the end of 10 years, what annually compounded rate are you paying

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4. If you borrow $25,000 today and promise to pay back $77,646.21 at the end of 10 years, what annually compounded rate are you paying on this loan? Choose the best answer. A. 9% B. 10% C. 11% (D.) 12% E. 13% 5. If a security promises to pay you of \$1 every 6 months forever. If the annual interest rate (or your required return for this security) is 12%, what is the most you want to pay for this security? A. $11.30 (B.) $16.67 C. $21.75 D. $45.45 E. $61.38 6.An effective annual rate must be greater than an annual percentage rate. True False

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