an annuity will pay 10,000 every year for the next 15 years. your finacial institution will...

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an annuity will pay 10,000 every year for the next 15 years. your finacial institution will...

an annuity will pay 10,000 every year for the next 15 years. your finacial institution will offer an annuity for 103,796.58 today. what is the implicit rate that it is offering.

(please show how to do it in exce and by hand)

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Answer 1

Answer #1

Function Arguments ? X RATE Nper Pmt 15 10000 PV -103796.58 1 1 1 1 1 = 15 = 10000 = -103796.58 = 0 = 0 Fv Type o = 0.0500000

Hence, Implicit rate is 5.00%

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Answer 2

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an annuity will pay 10,000 every year for the next 15 years. your finacial institution will...

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