You buy a 25000 piece of equipment for nothing down and 5500

You buy a $25,000 piece of equipment for nothing down and $5,500 per year for 6 years. What interest rate are you paying? The formula relating present worth P, annual payments A, number of years n, and interest rate I is A = P i(1 + i)^n/(1 + i)^n -1

Solution

Interest Rate 9.615% Total of 72 Monthly Payments $32,997.60 Total Interest Paid $7,997.60