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Moe Borrows $10,500 from the Bank at 11 Percent Annually

Question 123

Multiple Choice

Moe borrows $10,500 from the bank at 11 percent annually compounded interest to be repaid in six equal annual installments. The interest paid in the first year is


A) $1,155
B) $2,481
C) $144
D) $1,327

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