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A $10,000 Debt Is Repaid by Payments of $800 at the End

Question 5

Multiple Choice

A $10,000 debt is repaid by payments of $800 at the end of each quarter for five years. What quarterly-annually compounded nominal interest rate was charged on the loan?


A) 23.10%
B) 4.96%
C) 11.08%
D) 9.81%
E) 19.86%

Correct Answer:

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