Instructions: Determine the answer for each of the following independent questions. You will need to use Excel for the calculations. Answers can be rounded to the nearest dollar or nearest 1/10th of a percent. All work must be shown to be given credit.

A) You are considering purchasing land for investment. The current landowner is willing to sell you the land in exchange for a $70,000 note payable over 12 years. The landowner would require a payment of $10,273 at the end of each year for 12 years. Calculate the annual interest rate on this loan. (hint: this is an internal rate of return problem)