You borrow 180000 the annual loan payments are 2741404 for 3

You borrow $180,000; the annual loan payments are $27,414.04 for 30 years. What interest rate are you being charged? Round your answer to two decimal places.

Solution

Let interest rate be x%

At this rate;present value of annual loan payments=180000

180000=27,414.04/1.0x+27,414.04/1.0x^2+27,414.04/1.0x^3+.................+27,414.04/1.0x^30

Hence x=interest rate=15%(Approx).