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Your bank offers to lend you $100,000 at an 8.5% annual interest to start your new business. The terms require you to amortize the loan with 10 equal end-of-year payments. How much interest would you be paying in Year 2? Explain.

a) $7, 531
b) $7,927
c) $8,323
d) $8,740
e) $9,177

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