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Using the Annuity Rule, It Follows That an Annuity with a Present

Question 175

Multiple Choice

Using the annuity rule, it follows that an annuity with a present value of $100 and an annual payment of $20 must have an interest rate of:


A) 2 percent.
B) 5 percent.
C) 10 percent.
D) 20 percent.

Correct Answer:

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