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A Loan of $25,000,000 Is to Be Repaid by Annual

Question 69

Multiple Choice

A loan of $25,000,000 is to be repaid by annual year-end payments of $3,000,000 for 30 years. What is the effective interest rate on this loan?


A) 9.746%
B) 43.62%
C) 3.600%
D) 11.548%
E) 21.598%

Correct Answer:

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