Interest rate compounded annually, Accounting Basics

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Interest rate compounded annually

On September 1, 2010, the Baker Company received $44,940 from 4-Most Finance Company. To pay off this loan, the Baker Company will have to pay 4-Most $10,000 each year for 10 years. The first payment is due September 1, 2011. Which interest rate compounded annually is Baker paying on this loan?

a) 12%

b) 15%

c) 18%

d) 24%

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Accounting Basics: Interest rate compounded annually

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Accounting Basics: Interest rate compounded annually

Reference No:- TGS092476

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