Find the interest rate (or rates of return) in each of the following situations. You borrow $700 and promise to pay back $749 at the end of 1 year. You lend $700 and receive a promise to be paid $749 at the end of 1 year. You borrow $85,000 and promise to pay back $201,229 at the end of 10 years. You borrow $9,000 and promise to make payments of $2,684.80 at the end of each of the next 5 years.
Find the interest rate (or rates of return) in each of the following situations. You borrow $700 and promise to pay back $749 at the end of 1 year. You lend $700 and receive a promise to be paid $749 at the end of 1 year. You borrow $85,000 and promise to pay back $201,229 at the end of 10 years. You borrow $9,000 and promise to make payments of $2,684.80 at the end of each of the next 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
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Find the interest rate (or
- You borrow $700 and promise to pay back $749 at the end of 1 year.
- You lend $700 and receive a promise to be paid $749 at the end of 1 year.
- You borrow $85,000 and promise to pay back $201,229 at the end of 10 years.
- You borrow $9,000 and promise to make payments of $2,684.80 at the end of each of the next 5 years.
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