Assume ABC Corp. finances a new manufacturing machine with a $300,000 loan, which it plans to pay for with 10-year annuity payments that will begin next year. Assuming the interest rate is 10.1% and it will compound annually, which of the following is true?

HINT: think about what the "interest rate" is conceptually, and what it does for the creditors.

Group of answer choices

ABC Corp. would have paid less each year with a lower interest rate.

ABC Corp. will need to pay $17,618.94 each year, paying back in full 10 years from now

Both are correct

Neither are correct