The future value of a cash flow occurring 36 months from today is $15000, and its present value is $12,000. The effective annual rate which corresponds to these values is closest to: Group of answer choices A. 5.73% B. 7.72% C. 0.62% D. 0.21% E. Need more information to answer the question My answer is C which is 0.62%, I just want to make sure that my answer and my formula are correct.
The future value of a cash flow occurring 36 months from today is $15000, and its present value is $12,000. The effective annual rate which corresponds to these values is closest to: Group of answer choices A. 5.73% B. 7.72% C. 0.62% D. 0.21% E. Need more information to answer the question My answer is C which is 0.62%, I just want to make sure that my answer and my formula are correct.
Financial Management: Theory & Practice
16th Edition
ISBN:9781337909730
Author:Brigham
Publisher:Brigham
Chapter21: Dynamic Capital Structures And Corporate Valuation
Section: Chapter Questions
Problem 9P
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Question
The future value of a cash flow occurring 36 months from today is $15000, and its present value is $12,000. The effective annual rate which corresponds to these values is closest to:
Group of answer choices
A. 5.73%
B. 7.72%
C. 0.62%
D. 0.21%
E. Need more information to answer the question
My answer is C which is 0.62%, I just want to make sure that my answer and my formula are correct.
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