Find the interest rate which equates the price of the loan


Laila decided to purchase a new home and she needs a loan with amount of $40,000. she took out a loan from the bank for 10 years. Her annual fixed payment is $8000. Find the interest rate which equates the price of the loan with its future values discounted. Use in your experiment 10 interest rates (hint: start your calculation from interest rate =10%). Based on your results what is the relationship between the interest rate and the price of the loan? using excel.

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Financial Management: Find the interest rate which equates the price of the loan
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