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Assume a Lender Offers You a $25,000, 10%, Three-Year Loan

Question 138

Multiple Choice

Assume a lender offers you a $25,000, 10%, three-year loan that is to be fully amortized with three annual payments. The first payment will be due one year from the loan date. How much will you have to pay each year?


A) $8,042
B) $9,026
C) $10,053
D) $11,120

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