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Give that you borrowed $5000 and you agree to repay the loan with 4 annual payments...

Give that you borrowed $5000 and you agree to repay the loan with 4 annual payments of $1500, what annual effective rate of interest are you paying?

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Answer #1
PVOrdinary Annuity = C*[(1-(1+i/100)^(-n))/(i/100)]
C = Cash flow per period
i = interest rate
n = number of payments
5000= 1500*((1-(1+ Interest rate/100)^-4)/(Interest rate/100))
Interest rate% = 7.71
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