You currently have $67,000 in an interest-earning account. From this account, you wish to make 20 year-end payments of $5,000 each. What annual rate of return must you make on this account to meet your objective?
A) 4.16%
B) 5.03%
C) 6.42%
D) 7.32%
Answer: A
Explanation: A) Solving for the rate by the formula method is an iterative (or trial-and-error) process.
MODE = END
INPUT 20 ? -67,000 5,000 0
KEY N I/Y PV PMT FV
CPT 4.16
Business
You might also like to view...
Buying a home is one of the smartest investments you can make. What are the proper steps necessary to make sure you do it right?
What will be an ideal response?
Business
________ depict the broadest possible overview of system inputs, processes, and outputs
A) Data flow diagrams B) Databases C) Entity-relationship diagrams D) Flow charts
Business