Lilly Company purchases land with a fair market value of $49,175, paying for it by signing a note payable requiring cash payments of $10,000 at the end of each year for six years. What is the interest rate implicit in the note?
A)5%.
B)6%
C)7%
D)8%.

Question

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The Answer of Lilly Company purchases land with a fair market value of $49,175, paying for it by signing a note payable requiring cash payments of $10,000 at the end of each year for six years. What is the interest rate implicit in the note?
A)5%.
B)6%
C)7%
D)8%.

Lilly Company Purchases Land with a Fair Market Value of $49,175