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Author Question: Solving for an unknown interest rate given the PV, FV, PMT, and N is an iterative (or ... (Read 37 times)

soccerdreamer_17

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on: Jul 10, 2018
Solving for an unknown interest rate given the PV, FV, PMT, and N is an iterative (or trial-and-error) process.
 
  Indicate whether the statement is true or false.

Question 2

Present values and interest rates are inversely related. This means that if you deposit 1,000 into an interest-earning account today, it will take longer to reach a future value of 5,000 at an interest rate of 6 than at a rate of 4.
 
  Indicate whether the statement is true or false.


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dudman123

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Reply #1 on: Jul 10, 2018
Answer to Question 1

Answer: TRUE
Explanation:
You may solve via: = . However, letting the financial calculator do the calculations makes it easy.

Answer to Question 2

Answer: FALSE
Explanation: It will take less time.


soccerdreamer_17

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Reply 2 on: Jul 10, 2018
Thanks for the timely response, appreciate it

vickybb89

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Reply 3 on: Yesterday
Excellent

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