You buy a machine worth $200,000 and finance it with a debt/equity ratio of 3. The debt is in the form of a term loan. You need to make equal annual payments of $30,080 for the next 8 years in order to fully repay the term loan. What is the interest rate on the loan?

Answer rating: 100% (QA)

Total cost 200000 debt equity 31 therefore debt 150000 and equity 50000 ... View the full answer