Question
A four year note has a payment of $3000 at the end of each year for four years. What is the effect interest rate on
A four year note has a payment of $3000 at the end of each year for four years. What is the effect interest rate on the loan if the present principal of the note is $10,161?
The answer is 7%, but I have NO clue how to get the answer. I have been trying the entire day to figure out the answer to this problem. I tried asking this problem earlier, but they never showed me the steps. If it involves a calculator( I have the Ba II Plus), leave all the work you did and what buttons you pushed. I want to learn how to solve this problem.
I'm guessing PMT= $3,000, PV= 10,161 and N=4. Other than that, I have no clue what to do. If you can help solve this for me, I would really appreciate it!
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