Question

**please answer correctly :) I post a lot for this financial mathematics class and they seem to be answered wrong a lot!!

6.

On January 15, 2000, Enterprise A loans $5,000 to Enterprise B and $16,000 to Enterprise C. Enterprise B repays Enterprise A $6,000 on January 15, 2002 and this money is reinvested at a 5% annual effective rate. Enterprise C repays Enterprise A $18,500 on January 15, 2004. What is the annual yield received by Enterprise A over the four-year interval? Find the annual effective interest rates paid by Enterprises B and C. (Round your answers to two decimal places.)

Enterprise A's annual yield = ______%

Enterprise B's annual effective interest rate = ________%

Enterprise C's annual effective interest rate = ________ %

Answer 1

15/01/2000	enterprise B LOan	5000
15/01/2002	REPAYMENT	6000
	INTEREST FOR 2 YRS	1000
	ANNUAL EFFECTIVE INT OF B	(1000/5000*100)/2
	=	10%
15/01/2000	enterprise C LOan	16000
15/01/2004	REPAYMENT	18500
	INTEREST FOR 4 YRS	2500
	ANNUAL EFFECTIVE INT OF C	(2500/16000*100)/4
	=	3.91%
15/01/2002	INVESTMENT IN MUTUAL FUND	6000
	INTEREST RATE	5%
	INTEREST	6000*5%
	=	300
A'S ANNUAL YIELD
	ANNUAL INT FROM A	5000*10%
	=	500
	ANNUAL INT FROM B	16000*3.91%
	=	625.6
	INTEREST FROM MUTUAL FUND	300
	TOTAL YIELD	500+625.6+300
	=	1425.6
15/01/2000	TOTAL INVESTMENT	5000+16000
	=	21000
	ANNUAL YIELD	1425/21000*100
	=	6.785714286