Your brother-in-law borrowed $2,000 from you four years ago and then disappeared. Yesterday he returned and expressed a desire to pay back the loan, including the interest accrued. Assuming
That you had agreed to charge him 10%, and assuming that he wishes to make five equal annual
Payments beginning in one year, how much would your brother-in-law have to pay you annually in
Order to pay off the debt? (Assume that the loan continues to accrue interest at 10% per year.)
A) $697.43
B) $738.63
C) $751.46
D) $772.45
E) $798.24
Correct Answer:
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