A start-up company that makes robotic hardware for CIM (computer integrated manufacturing) systems borrowed $1 million to expand its packaging and shipping facility. The contract required the company...

A start-up company that makes robotic hardware

for CIM (computer integrated manufacturing) systems

borrowed $1 million to expand its packaging

and shipping facility. The contract required the

company to repay the lender through an innovative

mechanism called “faux dividends,” a series of

uniform annual payments over a fixed period of

time. If the company paid $290,000 per year for

5 years, what was the interest rate on the loan?