Find the interest rate for the following perpetuity solve fo

Find the interest rate for the following perpetuity (solve for l) $1275 = $1051 a. 8.24% b. 7.38% c. 6.73% O d. 5.98% O e-8.75%

Solution

Question 1

Hence the Answer will be A) 8.24%

QUESTION 2:

Hence Answer will be b) $19,234.61

Question 3:

Hence the Answer will be d) $850.24

Question 1 Given the Quotation is as follows $1275 = $105 / I So, I = $105 / $1275 Interest = 0.0824 or, we can say 8.24%