This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Solving for an unknown interest rate given the PV, FV, PMT, and N is an iterative (or ... (Read 12 times)

soccerdreamer_17

  • Hero Member
  • *****
  • Posts: 552
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.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

dudman123

  • Sr. Member
  • ****
  • Posts: 304
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

  • Member
  • Posts: 552
Reply 2 on: Jul 10, 2018
Gracias!

cpetit11

  • Member
  • Posts: 321
Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

« previous next »
 

Did you know?

Autoimmune diseases occur when the immune system destroys its own healthy tissues. When this occurs, white blood cells cannot distinguish between pathogens and normal cells.

Did you know?

Acetaminophen (Tylenol) in overdose can seriously damage the liver. It should never be taken by people who use alcohol heavily; it can result in severe liver damage and even a condition requiring a liver transplant.

Did you know?

The FDA recognizes 118 routes of administration.

Did you know?

The shortest mature adult human of whom there is independent evidence was Gul Mohammed in India. In 1990, he was measured in New Delhi and stood 22.5 inches tall.

Did you know?

Looking at the sun may not only cause headache and distort your vision temporarily, but it can also cause permanent eye damage. Any exposure to sunlight adds to the cumulative effects of ultraviolet (UV) radiation on your eyes. UV exposure has been linked to eye disorders such as macular degeneration, solar retinitis, and corneal dystrophies.

Situations Causing Changes in Respiratory Rate Situations Causing Changes in Respiratory Rate
Most drugs exhibit first-order elimination, in which the rate of drug elimination is equivalent to ... Most drugs exhibit first-order elimination, in which the rate of drug elimination is equivalent to ...
How to calculate simple interest (Part 3) How to calculate simple interest (Part 3)
Solving quadratic Solving quadratic
Calculate the amount of interest that will be charged on $9000.00 borrowed for four months at ... Calculate the amount of interest that will be charged on $9000.00 borrowed for four months at ...
The treasurer of a union proposes changing the method of compounding interest on premium ... The treasurer of a union proposes changing the method of compounding interest on premium ...
Video: Pressure volume relationships - Normal inspiration and expiration

For a complete list of videos, visit our video library