If it were evaluated with an interest rate of 0 percent, a 12-year ordinary annuity would have

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If it were evaluated with an interest rate of 0 percent, a 12-year ordinary annuity would have a present value of $4,200.00. If the future (compounded) value of this annuity, evaluated at Year 12, is $6,425.00, what nominal interest rate must the analyst be using to find the future value?
Annuity
An annuity is a series of equal payment made at equal intervals during a period of time. In other words annuity is a contract between insurer and insurance company in which insurer make a lump-sum payment or a series of payment and, in return,...
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Economics

ISBN: 978-0134106243

6th edition

Authors: R. Glenn Hubbard

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