A true APR of 5% will give you a return of $60K on $1.2M per year. At the
end of the year you'll have 1,260,000, you pay out 60,000 and have the $1.2M
principal left in hand.

Relatively easy to figure out: 60K is what % of 1.2M, or in formula fashion:
=60000/1200000


"ifeoma" wrote:

how do I calculate interest rate for infinite but periodic payments? say I
received $1.2M but have to pay $60k every year, at what interest rate is this
possible?