Question: Today, you borrowed $5,000 at 2.5% with weekly compounding. You have agreed to pay off the loan over 2 years by making equal semi-annually payments.

Today, you borrowed $5,000 at 2.5% with weekly compounding. You have agreed to pay off the loan over 2 years by making equal semi-annually payments. If you were solving for your unknown semi-annually payment amount using the annuity present value equation, what interest rate would you use? (Hint: You don't actually need to solve for your unknown payment amount.) Do not round intermediate calculations.

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