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You need to borrow $5,000 for four years. Easy Finance Co. will loan you the money and you will pay back the finance company $7,500

You need to borrow $5,000 for four years. Easy Finance Co. will loan you the money and you will pay back the finance company $7,500 in four years and the interest on the loan is compounded annually. You do not want to pay more than 10% annual interest. Would you want to take out this loan? Yes/No because ____.

Yes; the loan interest is exactly 10%

Yes; the loan interest is 7.72%

No; the loan interest is 10.67%

No; the loan interest is 11.02%

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