Homework Answers
rate positively ..
| Ans 1 | We have to use financial calculator to solve this | |||||||
| put in calculator- | ||||||||
| FV | 4000 | |||||||
| PV | -2000 | |||||||
| N | 10 | |||||||
| PMT | 0 | |||||||
| compute I | 7.18% | |||||||
| therefore answer = | 7.18% | |||||||
| Ans 2 | ||||||||
| Amount invested = | 150 | |||||||
| Interest rate = | 0.20% | |||||||
| Therefore annual interest = 150*.2%= | 0.3 | |||||||
| Total interest required to earn = 300-150= | 150 | |||||||
| Number of year required = 150/.3 | 500 | |||||||
| Ans = 500 year | ||||||||
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