Astart-up company that makes robotic hardware for cim (computer integrated manufacturing) systems borrowed $1.3 million to expand its packaging and shipping facility. the contract required the company to repay the lender through an innovative mechanism called "faux dividends," a series of uniform annual payments over a fixed period of time. if the company paid $305000 per year for five years, what was the interest rate on the loan?

Interest rate= 17.3% per five years

Explanation:

Giving the following information:

A start-up company that makes robotic hardware borrowed $1.3 million.

The contract required the company to repay the lender through an innovative mechanism called "faux dividends," a series of uniform annual payments over a fixed period of time. The company paid $305000 per year for five years.

Interest rate= (305000*5)/1300000= (1.173-1)*100= 17.3% per five years

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