Answer:
11.11%
Explanation:
For computing the annual percentage rate (APR) we need to apply the RATE formula i.e to be shown in the attachment below.
Given that,
Present value = $5,000 × (100 - 10%) = $5,000 × 90% = $4,500
Future value or Face value = $5,000
PMT = 0
NPER = 1
The formula is shown below:
= -Rate(NPER;PMT;-PV;FV;type)
The present value come in negative
So, after applying the formula, the APR is 11.11%
