Can someone answer it correctly ? I am posting it for third time. I am really needing all the steps.
Homework Answers
ANSWER:
Here, we are given the annuity and future value of annuity.
We can find interest rate using the future value annuity factor (FVAF) table.
Therefore,
Future value of annuity = annuity x FVAF
Therefore,
FVAF = future value of annuity/annuity
= $9799.32/$500
= 19.599
Now, the FVAF being 19.599 we can find it in the FVAF table in row 14 (year) and column 5 (interest rate).
Therefore,
Interest rate = 5%.
Add Answer to:
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