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12. What interest rate are you being charged?

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You borrow $125,000 and must make annual loan payments of $10,030.33 for 20 years, starting at the end of the year. What interest rate are you being charged?

a. 6%
b. 5%
c. 3%
d. 4%
e. 2%

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Solution Summary

The expert determines what interest rates are being charged.

Solution provided by:
Carol Sargent, PhD
Education
  • BSc, University of Virginia
  • MSc, University of Virginia
  • PhD, Georgia State University
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