« previous next »

Author Question: Your need to repay a loan with a future value of 304,071.00 in 18.5 years. If you can make annual ... (Read 122 times)

lindiwe

  • Hero Member
  • *****
  • Posts: 577
on: Jul 10, 2018
Your need to repay a loan with a future value of 304,071.00 in 18.5 years. If you can make annual year-end deposits of 11,000 into an account, what annual rate of return would you require to earn enough money to pay the loan in full at the due date?
 
  A) 7.92
  B) 8.73
  C) 4.16
  D) 4.39

Question 2

Solving for an unknown interest rate for annuity cash flows is an iterative (or trial-and-error) process.
 
  Indicate whether the statement is true or false.


olivia_paige29

  • Sr. Member
  • ****
  • Posts: 334
Reply #1 on: Jul 10, 2018
Answer to Question 1

Answer: D
Explanation: D) This is an iterative process (trial and error). Solve using the RATE function in Excel.
MODE = END
INPUT 18.5 ? 0 11,000 -304,071
KEY N I/Y PV PMT FV
CPT 4.39

Answer to Question 2

Answer: TRUE


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

According to research, pregnant women tend to eat more if carrying a baby boy. Male fetuses may secrete a chemical that stimulates their mothers to step up her energy intake.

Did you know?

More than 150,000 Americans killed by cardiovascular disease are younger than the age of 65 years.

Did you know?

About 3% of all pregnant women will give birth to twins, which is an increase in rate of nearly 60% since the early 1980s.

Did you know?

Pope Sylvester II tried to introduce Arabic numbers into Europe between the years 999 and 1003, but their use did not catch on for a few more centuries, and Roman numerals continued to be the primary number system.

Did you know?

You should not take more than 1,000 mg of vitamin E per day. Doses above this amount increase the risk of bleeding problems that can lead to a stroke.

Adult stem cells offer hope for cell therapy to treat diseases in the future Adult stem cells offer hope for cell therapy to treat diseases in the future
Blocked at every turn by congressional Republicans who hated him, President Obama turned to techniqu Blocked at every turn by congressional Republicans who hated him, President Obama turned to techniqu
Checklist of Developmental Skills: Birth to 5 years Checklist of Developmental Skills: Birth to 5 years
Adolescence: 12 years or puberty to the beginning of adulthood. Adolescence: 12 years or puberty to the beginning of adulthood.
To use a battery charger, make sure the charger is connected to the battery before plugging in the ... To use a battery charger, make sure the charger is connected to the battery before plugging in the ...
Using the Ti plasmid to make a transgenic plant Using the Ti plasmid to make a transgenic plant
Video: Protein digestion - stomach & small intestine

For a complete list of videos, visit our video library