Answer:
21.51%
Explanation:
RKI instruments borrowed $4,300,000 from a private equity firm to expand its facility.
A year after the loan was repaid with a single payment of $5,225,000
Therefore the interest rate on the loan can be calculated as follows
= 5,225,000-4,300,000/4,300,000 × 100
= 925,000/4,300,000 × 100
= 0.2151 × 100
= 21.51%
Hence the interest rate of the loan is 21.51%
