Question: Solving for I / Y means solving for the interest rate that balances the present and future values of a lump sum across n years

Solving for I/Y means solving for the interest rate that balances the present and future values of a lump sum across n years using this formula:
II==(FVnPV)1n1FVnPV1n1
What interest rate is required to make $100 grow to $150 in five years?
Enter the data into your calculator:
N=5PV=-100PMT=0FV=150
Solve for I/Y by pressing CPT I/Y.
I/Y =

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!