c. A security has a cost of the present value shown below and will return the future...
| c. A security has a cost of the present value shown below and will return the future value given after the years given. What rate of return does the security provide? | |||||||
| Inputs: | PV = | -1100 | |||||
| FV = | 4000 | ||||||
| I/YR = | ? | ||||||
| N = | 8 | ||||||
| Wizard (Rate): | |||||||
| Note: Use zero for PMT since there are no periodic payments. Note that the PV is given a negative sign because it is an outflow (cost to buy the security). Also, note that you must scroll down the menu to complete the inputs. | |||||||
Homework Answers
Use the following in financial calculator or excel:
| Nper | 8 | |
| FV | 4000 | |
| PV | -1100 | |
| PMT | 0 | |
| Rate | 17.51% | [rate(nper,pmt,pv,fv)] |
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PLEASE SHOW ME EXACTLY HOW TO DO THE PROBLEM!!!! I INSERTED A
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