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Interest Rate Calculation

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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

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Solution Summary

This solution calculates the interest rate given a present value and future value, along with a term in years, for compound interest.

Solution Preview

Use the following formula for compound interest:
M = P( 1 + i )^n

M is the final amount including the principal.
P is the principal amount.
i ...

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