Question: The professor had gone over this problem in class and said the answer is 6.77% however, I don't understand why. Looking over my notes, I'm

The professor had gone over this problem in class and said the answer is 6.77% however, I don't understand why. Looking over my notes, I'm not getting the same solution as he did.

Question: A businessman wants to buy a truck. The dealer offers to sell the truck for either $120,000 now, or six yearly payments of $25,000. Which of the following is closest to the interest rate being offered by the dealer?

a) 9%

b) 11%

c) 5%

d) 7%

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