« 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 121 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?

Of the estimated 2 million heroin users in the United States, 600,000–800,000 are considered hardcore addicts. Heroin addiction is considered to be one of the hardest addictions to recover from.

Did you know?

Patients who cannot swallow may receive nutrition via a parenteral route—usually, a catheter is inserted through the chest into a large vein going into the heart.

Did you know?

As of mid-2016, 18.2 million people were receiving advanced retroviral therapy (ART) worldwide. This represents between 43–50% of the 34–39.8 million people living with HIV.

Did you know?

More than 2,500 barbiturates have been synthesized. At the height of their popularity, about 50 were marketed for human use.

Did you know?

GI conditions that will keep you out of the U.S. armed services include ulcers, varices, fistulas, esophagitis, gastritis, congenital abnormalities, inflammatory bowel disease, enteritis, colitis, proctitis, duodenal diverticula, malabsorption syndromes, hepatitis, cirrhosis, cysts, abscesses, pancreatitis, polyps, certain hemorrhoids, splenomegaly, hernias, recent abdominal surgery, GI bypass or stomach stapling, and artificial GI openings.

“Mission Accomplished” proclaimed the banner on the USS Abraham Lincoln, where on May 1, 2003, Presi “Mission Accomplished” proclaimed the banner on the USS Abraham Lincoln, where on May 1, 2003, Presi
A medical assistant should present a neat appearance and make it a habit to wear a smile. A medical assistant should present a neat appearance and make it a habit to wear a smile.
Women who reported one, two, or three or more major life events in the past 5 years were ... Women who reported one, two, or three or more major life events in the past 5 years were ...
Agriculture in 10,000 years ago Agriculture in 10,000 years ago
Analysts expect Virtucon to make payouts of $8.7643B at the end of this year. Assume that all ... Analysts expect Virtucon to make payouts of $8.7643B at the end of this year. Assume that all ...
Jamal plans to retire in 17 years. He is saving $2000 every start of the month in a retirement ... Jamal plans to retire in 17 years. He is saving $2000 every start of the month in a retirement ...
Video: Fertilization and Development

For a complete list of videos, visit our video library