Find the interest rates earned on each of the following. Round your answers to the nearest whole numbe a. You borrow $700 and promise to pay back $798 at the end of 1 year. 14 b. You lend $700, and the borrower promises to pay you $798 at the end of 1 year. % 14 % c. You borrow $86,000 and promise to pay back $173,049 at the end of 12 years. % d. You borrow $18,000 and promise to make payments of $4,390.00 at the end of each year for 5 years.
Find the interest rates earned on each of the following. Round your answers to the nearest whole numbe a. You borrow $700 and promise to pay back $798 at the end of 1 year. 14 b. You lend $700, and the borrower promises to pay you $798 at the end of 1 year. % 14 % c. You borrow $86,000 and promise to pay back $173,049 at the end of 12 years. % d. You borrow $18,000 and promise to make payments of $4,390.00 at the end of each year for 5 years.
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
Give only typing answer with explanation and conclusion
Transcribed Image Text:Find the interest rates earned on each of the following. Round your answers to the nearest whole number.
a. You borrow $700 and promise to pay back $798 at the end of 1 year.
14
b. You lend $700, and the borrower promises to pay you $798 at the end of 1 year.
%
14
c. You borrow $86,000 and promise to pay back $173,049 at the end of 12 years.
%
%
d. You borrow $18,000 and promise to make payments of $4,390.00 at the end of each year for 5 years.
%
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.Recommended textbooks for you
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education