Question

In: Finance

You have borrowed 15,000 and agreed to repay the loan with 5 annual level payments of...

You have borrowed 15,000 and agreed to repay the loan with 5 annual level payments of 4000, with the first payment occurring one year from today. What annual interest rate are you paying?

Solutions

Expert Solution

Just calculate the IRR of the same and you will get the Annual Interest rate. I have shown the result in 4 decimals.

Providing you the statement showing accuracy of our calculation as well for your better understanding


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