Question

Calculate interest rate when present value is $460, future value is $968 and years are 11

Answer 1

Answer: i=6.70% rounded up from 6.99767%

Step-by-step explanation:

Given PV=460, FV=968, n=11,

Find i=?

PV=FV(1+i)^-n

460=968(1+i)^-11

460/968=(1+i)^-1/11

(460/968)^-1/11= 1+i

1.0699767=1+i

1.0699767-1=i

i=0.699767

i=6.70%