Calculating Interest Rates ILO31 Solve for the unknown inter

Calculating Interest Rates ILO31 Solve for the unknown interest rate in each of the following Years 4 18 19 25 Present Value $181 Interest Rate Future Value $ 297 335 1,080 48,000 40,353 185,382 531,618 Output area Input area: Present value Years Interest rate Future value # NUM! WNUM! ?NLIMI #NUM!

Solution

Present Value

Years

Interest rate

Future value

$181

4

13.18%

$297

$335

18

6.72%

$1,080

$48,000

19

7.37%

$185,382

$40,353

25

10.86%

$531,618

I am keeping percentages at two decimal places please apply accordingly as per your requirement.

Working:

Using financial calculator BA II Plus - Input details:

1

2

3

4

FV = Future Value =

-$297.00

-$1,080.00

-$185,382.00

-$531,618.00

PV = Present Value =

$181.00

$335.00

$48,000.00

$40,353.00

N = Total number of periods = Number of years =

4

18

19

25

PMT = Payment = Payment / frequency =

$0.00

$0.00

$0.00

$0.00

CPT > I/Y = Rate =

                  13.1799

                    6.7194

                    7.3707

                  10.8636

Convert in annual percentage rate = Rate = Rate x 100 =

13.18%

6.72%

7.37%

10.86%

Present Value	Years	Interest rate	Future value
$181	4	13.18%	$297
$335	18	6.72%	$1,080
$48,000	19	7.37%	$185,382
$40,353	25	10.86%	$531,618