Gesky Industrial Products manufactures brushless blowers for boilers, food service equipment, kilns, and fuel cells. The company borrowed $18,000,00018,000,000 for a plant expansion and repaid the loan in seven annual payments of $3,576,4203,576,420, with the first payment made 11 year after the company received the money. What was the interest rate on the loan? Use hand and spreadsheet solutions.

9%.

Explanation:

Note: The numbers in the question are repeated twice.

Borrowing amount = $18,000,000

Equivalent annual period = $3,576,420

Time period = 7

Interest rate of the loan formula:

A = P(A/P, i, n)

$3,576,420 = $18,000,000(A/P, i, 7)

(A/P, i, 7) = $3,576,420 / $18,000,000

(A/P, i, 7) = 0.1987

From interest table, we find the value of (A/P, i, 7) = 0.1987 at i = 9%. Thus, interest rate on the loan is 9%.

1) the stages a new product goes through from beginning to end, i.e., the stages that a product passes through from introduction through growth, maturity, and decline. 2) the time from initial research and development to the time at which sales and support of the product to customers are withdrawn. 3) the period of time during which a product can be produced and marketed profitably.

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