Question

Solve for the unknown interest rate in each of the following (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.):
Present Value Years Interest Rate Future Value
181 5 $ 317
335 17 1,080
48,000 13 185,382
40,353 30 531,618

Answer 1

Answer:

11.86%

7.13%

19.95%

8.97%

Explanation:

interest rate = $\frac{future value}{present value}}^{\frac{1}{n} } - 1$

(317/181)^ (1/5) - 1 = 11.86%

1080/335)^(1/17) - 1 = .13%

(185,382/48,000)^(1/13) - 1 = 19.95%

(531,618 / 40,353)^(1/30) - 1 = 8.97%