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Problem 4-15 (Effective Rate of Interest) Effective Rate of Interest Find the interest rate (or rates...

Problem 4-15 (Effective Rate of Interest)

Effective Rate of Interest

Find the interest rate (or rates of return) in each of the following situations. Do not round intermediate calculations. Round your answers to the nearest whole number.

  1. You borrow $650 and promise to pay back $676 at the end of 1 year.

    __________%

  2. You lend $650 and receive a promise to be paid $676 at the end of 1 year.

    __________%

  3. You borrow $80,000 and promise to pay back $101,342 at the end of 8 years.

    __________%

  4. You borrow $12,000 and promise to make payments of $2,771.70 at the end of each of the next 5 years.

    __________%

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Expert Solution

SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

As nothing was mentioned excel is used.

jeff jeffy answered 1 year ago
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