Question: John wants to borrow $ 5 , 0 0 0 . He will pay it back in ten equal annual installments. If the interest rate

John wants to borrow $5,000. He will pay it back in ten equalannual installments. If the interest rate changes and gets higher,
A.Johns annual payment will increase
B.Johns annual payment will decrease
C.John can borrow more if he wants to keep his payments thesame
D.John will pay lower total amount over life of loan to the lender
E.John should negotiate for a shorter period to reduce his annualpayment

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