A loan of $25,000 is to be repaid by thirty-three end-of-month payments. The first payment is $700 and then each payment is $25 more than the previous payment. Find the annual yield rate correct to the nearest hundredth of a percent. [HINT: The Cash Flow worksheet only accepts twenty-four payments, or thirty-two if you have a BA II Plus Professional calculator. If you are working with the BA II Plus calculator, suppose that the payments beyond the twenty-fourth, which you do not have registers to accommodate, are made along with the twenty-fourth. Now use the "guess and check" method, obtaining your first estimate by using IRR CPT. This is a challenging problem, especially for those of you with only 24 registers. However, when performing the successive calculations required by the "guess and check" method, you may make judicious use of the NPV subworksheet to decrease your work.]
A loan of $25,000 is to be repaid by thirty-three end-of-month payments. The first payment is $700 and then each payment is $25 more than the previous payment. Find the annual yield rate correct to the nearest hundredth of a percent. [HINT: The Cash Flow worksheet only accepts twenty-four payments, or thirty-two if you have a BA II Plus Professional calculator. If you are working with the BA II Plus calculator, suppose that the payments beyond the twenty-fourth, which you do not have registers to accommodate, are made along with the twenty-fourth. Now use the "guess and check" method, obtaining your first estimate by using IRR CPT. This is a challenging problem, especially for those of you with only 24 registers. However, when performing the successive calculations required by the "guess and check" method, you may make judicious use of the NPV subworksheet to decrease your work.]
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
![A loan of $25,000 is to be repaid by thirty-three end-of-month payments. The first payment is $700 and then each payment is $25 more than the previous payment. Find the annual
yield rate correct to the nearest hundredth of a percent. [HINT: The Cash Flow worksheet only accepts twenty-four payments, or thirty-two if you have a BA II Plus Professional
calculator. If you are working with the BA II Plus calculator, suppose that the payments beyond the twenty-fourth, which you do not have registers to accommodate, are made along
with the twenty-fourth. Now use the "guess and check" method, obtaining your first estimate by using IRR CPT. This is a challenging problem, especially for those of you with only 24
registers. However, when performing the successive calculations required by the "guess and check" method, you may make judicious use of the NPV subworksheet to decrease your
work.]](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9c30488e-84f0-4c37-bcaa-2bbbefa5b099%2F9beb683d-6734-4372-bae9-de3b123f0ab4%2F8hfkwbk_processed.png&w=3840&q=75)
Transcribed Image Text:A loan of $25,000 is to be repaid by thirty-three end-of-month payments. The first payment is $700 and then each payment is $25 more than the previous payment. Find the annual
yield rate correct to the nearest hundredth of a percent. [HINT: The Cash Flow worksheet only accepts twenty-four payments, or thirty-two if you have a BA II Plus Professional
calculator. If you are working with the BA II Plus calculator, suppose that the payments beyond the twenty-fourth, which you do not have registers to accommodate, are made along
with the twenty-fourth. Now use the "guess and check" method, obtaining your first estimate by using IRR CPT. This is a challenging problem, especially for those of you with only 24
registers. However, when performing the successive calculations required by the "guess and check" method, you may make judicious use of the NPV subworksheet to decrease your
work.]
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