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You Just Purchased an Automobile for $19,450 and Must Decide

Question 170

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You just purchased an automobile for $19,450 and must decide how to pay for it.Your local bank has granted you a five-year loan.Annual payments on the loan will be made at the end of each year and the amount of the loan payments,which include principal and interest,is $5,000 per year.What interest rate is being charged on the loan?

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$19,450/$5,000 = 3.890 table f...

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