Question: David Company borrowed $ 5 5 0 , 0 0 0 on December 3 1 , Year 4 . The loan will be paid with

David Company borrowed $550,000 on December 31, Year 4. The loan will be paid with six equal annual payments of $115,388, beginning on December 31, Year 5. The rate of interest compounded annually for the loan is most nearly equal to
a.7%.
b.8%.
c.6%.
d.9%.

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