9-7 Everything is the same except that a payment of $5,000 for 6 years and the present principal of the note is $25,000.

7 To determine the interest rate of the note, use PVAIF Pa,i=PVA/CF. PVAIF 4,i=$10,161$3,000=3.387; Table D shows that the interest rate of the note is 7 percent. Or, by financial calculator, 7.0028%.3000PMT,4N,10,161PV ( )