Poor Dog, Inc. borrowed $135,000 from the bank today. They must repay

QUESTION

Poor Dog, Inc. borrowed $135,000 from the bank today. They must repay this money over the next six years by making monthly payments of $2,215.10. What is the interest rate on the loan? Express your answer with annual compounding
Solution: XIRR 5.3624% 01-01-2010 -135000 01-02-2010 2215.1 01-03-2010 2215.1 01-04-2010 2215.1 01-05-2010 2215.1 01-06-2010 2215.1 01-07-2010 2215.1 01-08-2010 2215.1 01-09-2010 2215.1 01-10-2010 2215.1 01-11-2010 2215.1 01-12-2010 2215.1 01-01-2011 2215.1 01-02-2011 2215.1 01-03-2011 2215.1 01-04-2011 2215.1 01-05-2011 2215.1 01-06-2011 2215.1 01-07-2011 2215.1 01-08-2011 2215.1 01-09-2011 2215.1 01-10-2011 2215.1 01-11-2011 2215.1 01-12-2011 2215.1 01-01-2012 2215.1 01-02-2012 2215.1 01-03-2012 2215.1 01-04-2012 2215.1 01-05-2012 2215.1 01-06-2012 2215.1 01-07-2012 2215.1 01-08-2012 2215.1 01-09-2012 2215.1 01-10-2012 2215.1 01-11-2012 2215.1 01-12-2012 2215.1 01-01-2013 2215.1 01-02-2013 2215.1 01-03-2013 2215.1 01-04-2013 2215.1 01-05-2013 2215.1 01-06-2013 2215.1 01-07-2013 2215.1 01-08-2013 2215.1 01-09-2013 2215.1 01-10-2013¦

215.1 01-11-2013 2215.1 01-12-2013 2215.1 01-01-2014 2215.1 01-02-2014 2215.1 01-03-2014 2215.1 01-04-2014 2215.1 01-05-2014 2215.1 01-06-2014 2215.1 01-07-2014 2215.1 01-08-2014 2215.1 01-09-2014 2215.1 01-10-2014 2215.1 01-11-2014 2215.1 01-12-2014 2215.1 01-01-2015 2215.1 01-02-2015 2215.1 01-03-2015 2215.1 01-04-2015 2215.1 01-05-2015 2215.1 01-06-2015 2215.1 01-07-2015 2215.1 01-08-2015 2215.1 01-09-2015 2215.1 01-10-2015 2215.1 01-11-2015 2215.1 01-12-2015 2215.1 Interest rate on loan is 5.36%, Annual Compounding rate is = ((1+.0536/12)^12-1 )) = 5.50%

ANSWER:

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