Answer:
The interest rate is "21.999%".
Explanation:
The given values are:
Amount lent,
= 10,000
Amount repaid,
= 27,027
Years (n),
= 5
As we know,
⇒ 
On substituting the given values, we get
⇒ 
⇒ 
⇒ 
⇒ 
⇒ 
On subtracting "1" from both sides, we get
⇒
⇒ 
i.e.,
⇒ 
Answer:
$28,533.5
Explanation:
Principal value (PV) = $275,000
Time = 20 years
Rate = 8.25%
Present Value = P ((1-(1+R)^-n) / r)
275,000 = P ((1- (1 + 0.0825)^-20) /.0825)
275,000 x .0825 = P (1-(1/1.0825)^20)
22687.5 = P ((1.0825^20 - 1) / (1.0825 ^20))
22687.50 = P (4.8816 - 1 / 4.8816)
22687.5 = P (3.886 / 4.8816)
22687.5 = p(0.7951)
P = 22687.5 / 0.7951
P = $28533.5
Answer:
6.97%
Explanation:
the formula to be used is
The formula for calculating future value:
FV = P (1 + r)^n
FV = Future value
P = Present value
R = interest rate
N = number of years
$4,100.00 = $3,350.00 x ( 1 + r)^3
divide both sides of the equation by $3,350.00
$4,100.00 / $3,350.00 = ( 1 + r)^3
1.223881 = ( 1 + r)^3
find the cube root of both sides
1.069661 = 1 + r
r = 6.97%