A start-up company that makes hydraulic seals borrowed $800,000 to expand its packaging and shipping facility. The

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A start-up company that makes hydraulic seals borrowed $800,000 to expand its packaging and shipping facility. The contract required the company to repay the investors through an innovative mechanism called faux dividends, a series of uniform annual payments over a fixed period of time. If the company paid $250,000 per year for 5 years, what was the interest rate on the loan?

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Engineering economy

ISBN: 978-0073376301

7th Edition

Authors: Leland Blank, Anthony Tarquin

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