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A loan shark has offered to loan you $384,900.00 today so that you can afford the...

A loan shark has offered to loan you $384,900.00 today so that you can afford the house of your dreams. The only catch is that he wants you to repay him $568,700.00 exactly 4.00 years from today. You are very tempted as you want the house really badly. What is the rate of interest on the Shark’s loan?

Answer Format: Percentage Round to: 2 decimal places (Example: 9.24%, % sign required. Will accept decimal format rounded to 4 decimal places (ex: 0.0924))

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Answer #1

Function Arguments RATE Nper 4 Pmt 0 = 384900 -568700 - number Pv 384900 Fv -568700 Type 0.10251328 Returns the interest rate per period of a loan or an investment. For example, use 6%/4 for quarterly payments at 6% APR. Fv is the future value, or a cash balance you want to attain after the last payment is made. If omitted, uses Fv= 0. Formula result- 10.25% OK Cancel

Hence, Rate of interest is 10.25%

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