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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 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 ...

    Solution Summary

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