XY Company owed a $45,489 due on January 1, 2015.An agreement was reached to pay it off in five equal annual payments, starting on December 31, 2015.The interest rate was 10 percent.The total amount of interest paid under the terms of the agreement was (round annual payment to nearest $1):

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The total amount of interest paid under the terms of the agreement is $14,511. This is calculated as follows:Present value of the annuity = $45,489Interest rate = 10%Number of periods = 5Annual payment = $11,372Total interest paid = $14,511

XY Company Owed a $45,489 Due on January 1, 2015