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Mona takes out a loan of $175,000 to buy a house at an effective annual rate of interest of i%. She repays the loan by

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Mona takes out a loan of $175,000 to buy a house at an effective annual rate of interest of i%. She repays the loan by making level annual payments of $15,000 at the end of each year for 14 years, using the amortization method. Find the effective annual rate of interest of this loan. Possible Answers A 2.49% B 2.53% 2.57% D 2.61% E 2.64%

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