You have just read an advertisement stating, “Pay us $100 per year for 10 years, and...
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You have just read an advertisement stating, “Pay us $100 per year for 10 years, and we will pay you $100 per year thereafter forever.” If this is a fair deal, what is the rate of interest? Solve this problem in Excel, and print out a ONE PAGE view of your excel code. Make sure that the code that you used is visible. Do not exceed one page!
Homework Answers
the rate of interest = 0.07177 = 7.18%
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