Consolidated Freightways is financing a new truck with a loan of $60,000 to be repaid in six annual end-of-year installments of

Question

3 years ago

5

$13,375. What annual interest rate is Consolidated Freightways paying

1 answer:

Sidana [21] · Answer 1 · 2022-11-12T13:34:57+03:00

Answer:

9%

Explanation:

Calculation to determine What annual interest rate is Consolidated Freightways paying

Based on the information given we would be using Financial calculator to determine the ANNUAL INTEREST RATE

PV= $60,000

PMT= -$13,375

N= 6

I/Y=?

Hence:

I/Y = 9%

Therefore annual interest rate that Consolidated Freightways is paying will be 9%