Need help with number 2
1 answer:
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Answer:
so rate is 4.72 %
Step-by-step explanation:
Given data
time (t) = 5 year = 5×4 = 20 quarterly
amount = $27456
principal = $1225
to find out
interest rate (r)
solution
we use here amount formula that is
amount = principal ( -1 ) / r .....................1
put all value principal , amount and time in equation 1 and we get rate
rate is r/4 because it is quarterly payment
amount = principal ( -1 ) / r/4
27456 = 1225 ( -1 ) / r/4
( -1 ) / r/4 = 27456/ 1225
( -1 ) / r = 27456/ (1225 × 4)
( -1 ) = r 27456/ (1225 × 4)
now by the tvm solver and amount $27456
graph value
we get r = 0.0472
so rate is 4.72 %