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a. Nelson Nelson Co. wants to purchase a piece of heavy equipment in ten ten years...

a. Nelson Nelson Co. wants to purchase a piece of heavy equipment in ten ten years for $1,215,082. The corporation currently has $1,100,000 to invest for this purpose. Determine the rate of return​ (assuming annual​ compounding) required to accumulate sufficient funds to acquire the equipment at the end of the ten ten​-year period. ​(Use the present value and future value​ tables, a financial​ calculator, or a spreadsheet for your calculations. If using present and future value tables or the formula​ method, use factor amounts rounded to five decimal​ places, X.XXXXX. Round your final answer to the nearest whole​ percent, X.%)

The interest rate is

?? %
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Answer #1

Present value factor = 1100000/1215082 = 0.90529

Find the value in present value factor table in 10th year row.

The interest rate is = 1%

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