Stanton Inc. is considering the purchase of a new machine, which will reduce manufacturing costs by $5,000 annually and increase
1 answer:
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Answer:
The interest rate is "21.999%".
Explanation:
The given values are:
Amount lent,
= 10,000
Amount repaid,
= 27,027
Years (n),
= 5
As we know,
⇒
On substituting the given values, we get
⇒
⇒
⇒
⇒
⇒
On subtracting "1" from both sides, we get
⇒
⇒
i.e.,
⇒