Compute the interest rate if future value (FV) = $7,198, present value (FV) = $2,694, and number of years (t) = 9. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.):
Compute the interest rate if future value (FV) = $7,198, present value (FV) = $2,694, and number of years (t) = 9. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.):
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
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Compute the interest rate if
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Step 1
Given,
The future value is $7,198
Present value $2,694
Number of years is 9.
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Follow-up Question
How does the exponent (9) go from 9 to 1/9. Why are we using a fraction? How did we decide that? How do we get rid of the 1 on the right side? It's not using a square root?
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