### Problem regarding the annual interest rate

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##### Reference no: EM131038468

You are considering borrowing \$10,000 for 3 years at an annual interest rate of 6%. The loan agreement calls for 3 equal payments, to be paid at the end of each of the next 3 years. (Payments include both principal and interest.) The annual payment that will fully pay off (amortize) the loan is closest to

A. \$2,674.

B. \$2,890.

C. \$3,741.

D. \$4,020.

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