At what nominal rate of interest, convertible monthly, is $10,000 the present value of $164.64 paid...

Question

Question

At what nominal rate of interest, convertible monthly, is $10,000 the present value of $164.64 paid at the beginning of each

business finance

Answer 1

Answer #1

Using financial calculator:

Set BGN=1

FV= 10000

PV= -164.64

N= 7*12=84

Solve for I/Y as 5.01026

This is a monthly rate

Nominal rate= 5.01026*12

= 60.123%

Answer 2

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