Purchase Solution

Interest Rate

Not what you're looking for?

Ask Custom Question

Calculating Interest Rate:

Find the interest rate implied by the following combinations of present and future values:

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

Purchase this Solution
Solution Summary

The solution explains how to calculate the implied interest rate given the PV and the FV.

Solution Preview

The implied interest rate would be such that the present value increases to future value in the given ...

Purchase this Solution
Free BrainMass Quizzes
Managing the Older Worker

This quiz will let you know some of the basics of dealing with older workers. This is increasingly important for managers and human resource workers as many countries are facing an increase in older people in the workforce

Operations Management

This quiz tests a student's knowledge about Operations Management

IPOs

This Quiz is compiled of questions that pertain to IPOs (Initial Public Offerings)

Lean your Process

This quiz will help you understand the basic concepts of Lean.

Employee Orientation

Test your knowledge of employee orientation with this fun and informative quiz. This quiz is meant for beginner and advanced students as well as professionals already working in the HR field.

View More Free Quizzes
Related BrainMass Solutions

  • Expected effective financing rate

    C) equal to the Swiss interest rate. D) less than the Swiss interest rate. E) more than the U.S. interest rate.

  • Find the Equivalent Before-tax Interest Rate

    Before-tax interest rate * (1-income tax rate) = After-tax interest rate Before tax interest rate * (1-x) = After-tax interest rate Before-tax interest rate = After-tax interest rate/(1-x) Thus, the investor will demand a minimum of After-tax interest

  • This posting addresses nominal and real interest rates.

    The real interest rate is the sum of the nominal interest rate less the rate of inflation. The appropriate rate of inflation is taken out of the total to determine the real interest rate.

  • Distinguish Between Stated Rate and Effective Rate

    STATED (NOMINAL) AND EFFECTIVE RATES OF INTEREST Stated interest rate is also called nominal interest rate which is a rate of interest quoted for a year that has not been adjusted for frequency of compounding.

  • Five-year forward rate

    118717 Five-Year Forward Rate Using Interest Rate Parity Assume that interest rate parity holds. The U.S. five-year interest rate is 5% annualized, and the Mexican five-year interest rate is 8% annualized.

  • Nominal rate and Fisher effect

    This is because the nominal interest rate is: Nominal interest rate=Real interest rate+inflation rate So the interest rate that is asked in the market is the nominal interest rate that includes the inflation factor and when the inflation changes the

  • Calculating the forward rate between two currencies

    Interest Rate Parity , equate (1) and (2), we get Forward Rate*1*(1+interest rate in UK)=1*Spot Rate*(1+Interest rate in Japan) Forward Rate=Spot Rate*(1+interest rate in Japan)/(Interest Rate in UK) Solution describes the steps to calculate the

  • Exchange rate

    a) interest rate differentials; interest rate differentials b) inflation and interest rate differentials; interest rate differentials c) income and interest rate differentials; inflation differentials d) interest rate differentials

  • Calculating the interest rates by using IRP concept

    Spot Rate of Euro=$1.20 Forward Rate of Euro=$1.23 Interest Rate in Foreign country=2.439% Interest Rate in Home country=ih=?

  • Calculating effective and nominal interest rates

    What is the effective interest rate if nominal annual interest is 12.68% computed continuously? Nominal rate of interest=r=14.8% Effective rate of interest=e^r-1= 2.71828^12.68%-1=13.519% (e=2.71828) 3.

View More Related Solutions