Question

Find the interest rate implied by the following combinations of present and future values: (Do not round intermediate calculations. Enter your answers as percent rounded to 2 decimal places. Leave no cells blank- be certain to enter "0" wherever required.)

Present Value Years Future Value    Interest Rate

$330 10 591 %A B Present Value Years Future Value Interest Rate SSSO 10 591 % 148 S 192 % 230 6 230 %

148 3 192 %

230 6 230    %

2 0
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Answer #1

Future value = Present value*(1+r)^(Years)

r = ((Future value/Present value)^(1/Years))-1

A B с D E F 1 2 3 4 Present value Years Future value Interest rate 330 10 591 6.00% 148 3 192 9.06% 230 6 230 0.00% 5 6 7 8

A B с D E 1 2 3 Present value Years Future value st 10 330 148 Interest rate =((D4/B4)^(1/C4))-1 =((D5/B5)^(1/C5))-1 =((D6/B6

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