Question

Solve for the unknown interest rate in each of the following: (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Interest Rate Present Value 745 Years 41 % 935 Future Value $ 1,441 1,778 144,832 318,815 16 18,000 73,300

Answer 1

r = (FV / PV)^1/t – 1

r = ($1,441 / $745)^1/4 – 1 = 0.1793 or 17.93%

r = ($1,778 / $935)^1/5 – 1 = 0.1372, or 13.72%

r = ($144,832 / $18,000)^1/16 – 1 = 0.1392, or 13.92%

r = ($318,815 / $73,300)^1/19 – 1 = 0.0804, or 8.04%