Dorothy borrows 10,000 from the bank. For a four-year loan, the ...

[burchfield96]

Dorothy borrows 10,000 from the bank. For a four-year loan, the bank requires annual end-of-year payments of 3,223.73. The annual interest rate on the loan is ________.
 
  A) 9 percent
  B) 10 percent
  C) 11 percent
  D) 12 percent

Question 2

One weakness of payback period approach is its failure to recognize cash flows that occur after the payback period.
 
  Indicate whether the statement is true or false

[Missbam101]

Answer to Question 1

C

Answer to Question 2

TRUE

[burchfield96]

Thank you

[Missbam101]

No problemo