Roger inc. is expected to pay a settlement to a customer in the amount of $60,000...

Roger inc. is expected to pay a settlement to a customer in the amount of $60,000 a year for ten years. The equivalent settlement today is worth $2,000,000. What is the implied interest rate?

Expert Solution

PMT =60000
PV =2000000
Number of Periods =10
RATE using excel formula=RATE(10,-60000,0,2000000) =25.05%

Implied Interest Rate =25.05%

jeff jeffy answered 2 years ago

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