Homework Answers
Given,
N = 5 years
Let Present Value = X
PMT = 0
FV = 2X
We need to calculate interest rate I/Y
Using Calculator, enter n = 5, PMT = 0, PV = -1, FV = 2,
Press CPT I/Y to get I/Y = 14.87%
Manual Calculation
FV = PV(1+r)n
=> 2X = X(1+r)5
=> r = 14.87%
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