Computing the rate of interest


Problem:

Question: What is the rate of interest on a $10,000 loan that is to be repaid in 10 equal annual installments of $1,917.

a. 8%

b. 10%

c. 14%

d. 16%

e. 15%

Note: Please show how to work it out.

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Accounting Basics: Computing the rate of interest
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