A start-up company that make 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 $300,000 per year for 5 years, what was the interest rate on the loan?

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A: QUESTION 1