Question

In this part, calculate the interest rates. Use the Excel Rate function to compute the interest rates.

1. In 2018, one of the first copper pennies struck at the Philadelphia mint in 1793 was sold for $300,000. What was the rate of return on this investment? (6 Points)

2. Calculate the interest rates in the table below using the Excel Rate function. (6 Points)

Present Value	Years	Future Value	Interest Rate
$750	10	$1,380	?
$900	12	$1,750	?
$16,000	25	$142,800	?
$70,500	16	$312,900	?

Answer 1

B А 1 Part A 2 PV 3 FV 4 NPER 5 Rate 6 7 8 Part B Present $0.01 $300,000 225 7.95% 9 Value Years 10 11 12 13 $750 $900 $16,000 $70,500 Future Interest Value Rate 10 $1,380 6.29% 120 $1,750|5.70% 25 $142,800 9.15% 16 $312,900 9.76%

1 Part A 2 PV 3 FV 4 NPER 5 Rate 0.01 300000 =2018-1793 =RATE(B4,,-B2,B3) 8 Part B 9 Present Value Years Future Value Interest Rate 10 12 10 750 11 900 12 16000 13 70500 25 1380 1750 142800 312900 =RATE(B10,,-A10,C10) =RATE(B11,,-A11,C11) =RATE(B12,,-A12,C12) =RATE(B13,-A13,C13) 16