Question
Asked Apr 5, 2019

Compute the nominal annual rate of interest for the simple annuity due.

Future value: - 
Present value: $35,000, Periodic Rent: $380, PaymentPeriod:1month,Term:12years,ConversionPeriod:monthly

check_circleExpert Solution
Step 1

Calculation of Nominal Annual Rate of Interest:

The Nominal Annual Rate of Interest can be calculated using a excel spreadsheet and excel function =RATE, which denotes the interest rate of any investment. The excel spreadsheet is shown below:

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Step 2

The excel spreadsheet workings are shown below:

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