You can retire a loan either by paying off the entire amount $10,000 now or by paying $1400 per year for ten years, with the first payment made at the end of year one. Use a spreadsheet to find a...

You can retire a loan either by paying off the entire amount $10,000 now or by paying $1400 per year for ten years, with the first payment made at the end of year one. Use a spreadsheet to find a cutoff value r0 such that if the nominal rate r is <> r0, then the second option is preferable. Assume that interest is compounded yearly.