(Annuity interest rate) You've been offered a loan of $25,000, which you will have to repay in 11 equal annual payments of $5,000, with the first payment due one year from now. What interest rate would you pay on that loan? The interest rate you would pay on the loan is %. (Round to two decimal places.) C

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Amortized Loans

The term "amortization" refers to spreading the value of a loan or a debt over a series of regular payments or installments comprising of both the principal and interest amount. It generally involves the process where in the value of a loan or an intangible asset is written down over its maturity period.