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.

Reference no: EM131038468

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