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You plan to borrow $6,000 at a 7.5% annual interest rate. The terms require you to amortize the loan with 7 equal end-of-year payments. How

You plan to borrow $6,000 at a 7.5% annual interest rate. The terms require you to amortize the loan with 7 equal end-of-year payments. How much interest would you be paying in Year 2?

Select the correct answer.

a. $398.79

b. $407.79

c. $385.29

d. $389.79

e. $394.29

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