5 example: Rol (Return on investment) is the perceived interest rate you earned. vie: If I invested in a lemonade stond, ($100) and sold Lemonade such that at then end of the first year I earned $112.30 (assume lemonade stand not useful Salvage =o, after I year) 112.34 then the perceived interest rate that would produce the same "return Cause is clearly 12,3%= or solving analytically find it that would income - cost=06 Extrapolare: 2 -$100+ $120CPF, 1) =0 L 12% +0.312.39 test i=12%: 100+1123126. 122, 1) = 0,27 ai is between test uz 13% -100+112.3176, 159, 1) = -0.615 12% 13% because Pu goes from t tot 0 . 6215+6275-0.305 18929 .8850 5 example: Rol (Return on investment) is the perceived interest rate you earned. vie: If I invested in a lemonade stond, ($100) and sold Lemonade such that at then end of the first year I earned $112.30 (assume lemonade stand not useful Salvage =o, after I year) 112.34 then the perceived interest rate that would produce the same "return Cause is clearly 12,3%= or solving analytically find it that would income - cost=06 Extrapolare: 2 -$100+ $120CPF, 1) =0 L 12% +0.312.39 test i=12%: 100+1123126. 122, 1) = 0,27 ai is between test uz 13% -100+112.3176, 159, 1) = -0.615 12% 13% because Pu goes from t tot 0 . 6215+6275-0.305 18929 .8850