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roger has just lost a lawsuit and has agreed to make equal annual payments of $13,200 for the next 9 years with the first payment due today. the value of this liability today is $94,000. what is the interest rate on the payments?



Answer :

The interest rate on the payments  for the lawsuit of an annual payment of $13,200 with a liability of $94,000 is 26.38%

Since we are provided with annual payments in order of installments of  9 years and the  liability  which is $94,000

So, the Total Payments of  rogers will  be = $13,200 X 9

=$118800

As we know the formula we  refer to for calculating the interest is

Interest = Total Payments - Initial Liability

= $118800 - $94,000 = $24,800

So the interest rate will be

Interest Rate = (24,800/$94,000)X 100

To know more about  interest rates refer to the link https://brainly.com/question/13324776?referrer=searchResults.

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