You borrow $285,000; the annual loan payments are $43,405.56 for 30 years. What interest rate are...

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You borrow $285,000; the annual loan payments are $43,405.56 for 30 years. What interest rate are...

You borrow $285,000; the annual loan payments are $43,405.56 for 30 years. What interest rate are you being charged? Round your answer to two decimal places.

Please show how to enter this in a finance calculator

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Answer 1

Answer #1

Amount borrowed = $285,000
Annual payment = $43,405.56
Period of loan = 30 years

Let annual interest rate be i%

$285,000 = $43,405.56 * PVA of $1 (i%, 30)

Using financial calculator:
N = 30
PV = 285000
PMT = -43405.56
FV = 0

I = 15%

Annual interest rate = 15.00%

So, interest rate on this loan is 15.00%

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Answer 2

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You borrow $285,000; the annual loan payments are $43,405.56 for 30 years. What interest rate are...

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