Calculating Interest Rate. Find the interest rate implied by the following combinations of present and future values.

PresentValue Years Future Value
$400 11 $684
$183 4 $249
$300 7 $300

Since you do not state otherwise, I am assuming that your interest rate is compounded annually.
I will do the second of your questions.

Using Amount = Present Value(1+i)^n
we do not know i.

take the fourth root
giving you i=0.0080031
so the annual rate is 8%

by observation the rate for you last question is clearly 0%

  1. 👍 0
  2. 👎 0
  3. 👁 744
  1. 460 present 11 years 968 future value

    1. 👍 0
    2. 👎 0

Respond to this Question

First Name

Your Response

Similar Questions

  1. math

    Find the monthly interest payment in the situation described below. Assume that the monthly interest rate is 1 divided by 1/12 of the annual interest rate. You maintain an average balance of ​$780 on your credit​ card, which

    asked by me on April 18, 2019
  2. Finance

    The Carter Company's bond mature in 10 years have a par value of 1,000 and an annual coupon payment of $80. The market interest rate for the bond is 9%. What is the price of these bonds The coupon rate on the bond,

    asked by Dee on February 14, 2007
  3. Algebra

    Given the equation A=250(1.1)t, you can determine that the interest is compounded annually and the interest rate is 10%. Suppose the interest rate were to change to being compounded quarterly. Rewrite the equation to find the new

    asked by Amaya on March 19, 2020
  4. math

    Case: A borrower received a 30-year ARM mortgage loan for $200,000. Rate caps are 3/2/6. The start rate is 3.50% and the loan adjusts every 12 months for the life of the mortgage. The index used for this mortgage is LIBOR (for

    asked by jim on May 7, 2020
  5. Maths

    Raj deposits $20000 in the bank that pays simple interest at the rate of 2.75% at anuum. If the interest rate decrease to x%. He will receive $50 less every year. Find the value of x?

    asked by Zain on May 14, 2019
  1. fin 200 question

    Jean will receive $8,500 per year for the next 15 years from her trust. If a 7% interest rate is applied, what is the current value of the future payments? Describe how you solved this problem, including which table (for example,

    asked by meshelle on July 14, 2009
  2. business

    For a given nominal interest rate, an unexpectedly low inflation rate ______ the real interest rate. a. increases b. decreases c. has no impact on d. may either increase or decrease e. is subtracted from

    asked by Drew on March 17, 2008
  3. Math (finance )

    Find the monthly payment, needed to have a sinking fund accumulate the future value, $16,000. The yearly interest rate is 6.7% and the number of payments is 20. Interest is compounded monthly. I do not remember how to solve for

    asked by Anonymous on April 22, 2017
  4. college algebra

    John invests $2500 in an account that pays a rate r compounded annually. If after 2 years the total interest earned is $650, find the approximate rate of interest

    asked by Anonymous on November 12, 2012
  5. Finance

    Find the future value of $10,000 invested now after five years if the annual interest rate is 8 percent. a. What would be the future value if the interest rate is a simple interest rate? b. What would be the future value if the

    asked by tisha on August 22, 2012

You can view more similar questions or ask a new question.