Question

Lesson 3 Project Question 1 (of 20) 1. value 5.00 points Solve for the unknown interest rate in each of the following (Do not round intermediate calculations Enter your answers as a percent rounded to 2 decimal places, .g. 12. 16.) r est Rate Future Value $ 270 Present Value Years $ 210 5 33019 36.000 20 35,261 30 175.751 764676 Hints eBook & Resources _

Answer 1

Present value	Years	Interest rate	Future value
210	5	5.15%	270
330	19	5.47%	907
36000	20	8.25%	175751
35261	30	10.80%	764676
270 = 210*((1+r)^5)
(1+r)^5 = 270/210
(1+r)^5 = 1.285714
1+r = (1.285714)^(1/5)
1+r = 1.051547
r = .051547
r = 5.15%
907 = 330*((1+r)^19)
(1+r)^19 = 907/330
(1+r)^19 = 2.748485
(1+r) = (2.748485)^(1/19)
1+r = 1.054654
r = .054654
r = 5.47%
175751 = 36000*((1+r)^20)
(1+r)^20 = 175751/36000
(1+r)^20 = 4.881972
(1+r) = 4.881972^(1/20)
(1+r) = 1.082505
r = .082505
r = 8.25%.
764676 = 35261*((1+r)^30)
(1+r)^30 = 764676/35261
(1+r) = 21.68617^(1/30)
(1+r) = 1.107999
r = .107999
r = 10.80%