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The bank offers to lend you $5,000 at 5% per year repayable by equal annual payments at the end of each of the next five

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The bank offers to lend you $5,000 at 5% per year repayable by equal annual payments at the end of each of the next five years. The bank calculates that the required annual payments are $1,150. Select one: None of the presented responses is correct The bank is overcharging you It is not possible to generalize The bank is undercharging you

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