Sara borrowed a total of $10,000 as loans from her aunt Talia and after six years paid a total of $10,000 and paid another $2,000 after eight years to spend on the mortgage. Calculate the interest rate Sara spent as if the amounts were based upon annual augmenting.
Sara borrowed a total of $10,000 as loans from her aunt Talia and after six years paid a total of $10,000 and paid another $2,000 after eight years to spend on the mortgage. Calculate the interest rate Sara spent as if the amounts were based upon annual augmenting.
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
100%
Sara borrowed a total of $10,000 as loans from her aunt Talia and after six years paid a total of $10,000 and paid another $2,000 after eight years to spend on the mortgage. Calculate the interest rate Sara spent as if the amounts were based upon annual augmenting.
Expert Solution
Information;
Loan amount = $10,000
Payment in 6 years = $10,000
Payment in 8 years = $2,000
We will sue IRR function of excel.
Step by step
Solved in 2 steps with 2 images
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