Answer:
20%
Explanation:
The computation of the discount rate per year is shown below:
As we know that
Discount factor = 1 ÷ (1 + Interest rate)^number of years
0.8333 = 1 ÷ (1 + Interest rate)^1
1 + Interest rate = 1 ÷ 0.8333
Interest rate = 1.20 - 1
Interest rate = 0.20 or 20%
Hence, the interest rate is 20% by applying the discount factor formula which is shown above
