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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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