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Today, you borrowed $25,000 at 6.5% with semi-annually compounding. You have agreed to pay off the loan over 6 years by making equal monthly payments.

Today, you borrowed $25,000 at 6.5% with semi-annually compounding. You have agreed to pay off the loan over 6 years by making equal monthly payments. If you were solving for your unknown monthly payment amount using the annuity present value equation, what interest rate would you use? (Hint: You don't actually need to solve for your unknown payment amount.)

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