You borrow $25,000 to be repaid in 24 monthly installments of $1,212.17. The annual interest rate is closest to:

15%

Explanation:

For computing the annual interest rate we need to apply the RATE formula i.e to be shown in the attachment below;

Given that,  

Present value = $25,000

Future value or Face value = $0

PMT = $1,212.17

NPER = 24 months

The formula is shown below:  

= Rate(NPER;PMT;-PV;FV;type)  

The present value come in negative  

So, after applying the above formula,

The annual interest rate is

= 1.25% × 12 months

= 15%

the answer would be voluntary exchange -

"the act of buyers and sellers freely and willingly engaging in market transactions. moreover, transactions are made in such a way that both the buyer and the seller are better off after the exchange than before it occurred."

hope this : )

-shy