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Lenny borrowed $10,000 on a 5-year interest-bearing note with an interest rate of 10%. At the end of 5 years, Lenny must repay the bank

Lenny borrowed $10,000 on a 5-year interest-bearing note with an interest rate of 10%. At the end of 5 years, Lenny must repay the bank $16,105. Based on the amount that must be repaid, interest was calculated with what type of interest rate?

a. Compound Interest

b. Simple Interest

c. Complex Interest

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