Explore BrainMass
Share

Calculating Interest Rate

This content was STOLEN from BrainMass.com - View the original, and get the already-completed solution here!

Calculating Interest Rate. Find the interest rate implied by the following combinations of
present and future values:

Present Value Years Future Value
$400 11 $648
$183 4 $249
$300 7 $300

Please show me how you calculated the problem so I can do it for my paper. These are not the actual figures that I will use in my paper but will assist me in how to do it right. Thanks

© BrainMass Inc. brainmass.com October 24, 2018, 10:32 pm ad1c9bdddf
https://brainmass.com/economics/finance/calculating-interest-rate-162682

Solution Preview

FV = PV (1+interest Rate)^years

648 = 400* (1+i)^11

(648/400) = ...

$2.19
See Also This Related BrainMass Solution

Calculate the 6-Month Forward Exchange Rate Based on the Nominal Interest Rates on Bonds

Six-Month T-Bills have a nominal rate of 7 %, while default-free Japanese bonds that mature in 6 months have a nominal rate of 5.5%. In the spot exchange market, 1 yen equals $0.009. If interest rate parity holds, what is the 6-month forward exchange rate?

View Full Posting Details