What is the interest rate on a three-year investment with a future value of $1000 and a present value of $863.84?

Question

03-02-2018
Business

contestada

What is the interest rate on a three-year investment with a future value of $1000 and a present value of $863.84?

Respuesta :

Otras preguntas

A cab charges $1.75 for the flat fee and $0.25 for each mile. Write and solve an inequality to determine how many miles Eddie can travel if he has $15 to spend.

Erik is 4.23 feet tall. Stacy is 4.3 feet tall. Who is taller? Explain. Plssss answerrr

a normal distribution with a mean of 15 and standard deviation 0f 5.95% its area is within ?

2 Which of the following best describes how comparative anatomy can be used to determine the evolutionary relationship between two organisms?

What is the act of forcing people into military service?

So, how do you say "Hi, my name is Ziona" in Spanish?

What uses bacteria to copy dna

Do you agree or disagree with the following statement? The Enlightenment would not have been possible without the scientific revolution.

how were the Japanese able to surprise the ya at pearl harbor?

mathmate mathmate · Answer 1 · 2018-02-07T13:29:47+01:00

mathmate mathmate

07-02-2018

Use
[tex]F=P(1+i)^n[/tex]

Substituting
F=1000, P=863.84, n=3
solve for i
[tex]1000=863.84^(1+i)^3[/tex]
solving for i
=>
[tex]i=(\frac{1000}{863.84})^{\frac{1}{3}}-1[/tex]
=0.0500

Answer: the annual interest rate is 5%

Answer Link