You are planning to buy a CD for $1,352. You will receive $1,500 in 2 years....
You are planning to buy a CD for $1,352. You will receive $1,500 in 2 years. Use a financial calculator to find the interest rate you will receive on that investment, assuming annual compounding.
I can do this manually, but can't seem to figure out how to correctly input this into a financial calculator using N, I/Y, PV, PMT, and FV.
Homework Answers
Steps on BA II plus -
N : Number of Periods
I/Y : Interest rate per period
PV : Present Value
PMT : Payment amount each period
FV : Future Value
Enter the following in the calculator -
N = 2
FV = 1500
PV = -1352
PMT = 0
Now, press CPT I/Y
we get the interest rate as 5.33%
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