Find the interest rate (or rates of return) in each of the following situations.You borrow $700 and promise to pay back $749 at the end of 1 year.You lend $700 and receive a promise to be paid $749 at the end of 1 year.You borrow $85,000 and promise to pay back $201,229 at the end of 10 years.You borrow $9,000 and promise to make payments of $2,684.80 at the end of each of the next 5 years.

a) Rate = (future value/present value)^(1/n) -1

Answered: Find the interest rate (or rates of…

Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)

7th Edition

ISBN:9780357033609

Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Chapter4: Managing Your Cash And Savings

Section: Chapter Questions

Problem 7FPE: Calculating interest earned and future value of savings account. If you put 6,000 in a savings...

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Find the interest rate (or rates of return) in each of the following situations.

You borrow $700 and promise to pay back $749 at the end of 1 year.
You lend $700 and receive a promise to be paid $749 at the end of 1 year.
You borrow $85,000 and promise to pay back $201,229 at the end of 10 years.
You borrow $9,000 and promise to make payments of $2,684.80 at the end of each of the next 5 years.

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