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A construction company takes a loan of $280,000 to cover the cost of a new grader. If the interest rate is 8.75% APR, and payments
A construction company takes a loan of $280,000 to cover the cost of a new grader. If the interest rate is 8.75% APR, and payments are made monthly for five years, what percentage of the outstanding principle does the company pay in interest each month?
(a) 0.73%
(b) 7.29%
(c) 8.75%
(d) 9.25%
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