To calculate internal resistance, one must recognize that it accounts for the voltage drop in real batteries under load. The internal resistance can be determined by analyzing a circuit with the known variables: a 20 V battery, a 74-ohm resistor, and a current of 107 mA. By drawing the circuit and applying Ohm's law, the internal resistance can be calculated as the difference between the ideal voltage and the voltage drop across the external resistor. This approach illustrates how internal resistance affects terminal voltage as current increases. Understanding this concept is crucial for accurate battery performance analysis.