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18. What APR is being earned on a deposit of $5,000 made 10 years ago today...

18. What APR is being earned on a deposit of $5,000 made 10 years ago today if the deposit is worth $9,848.21

      today? The deposit pays interest semiannually. (please show work or financial calculator steps)

A.

3.56%

B.

6.76%

C.

6.89%

D.

7.12%
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Answer #1

rate =r= (future value/present value)^(1/time)-1 APR = 6.89% ((9848.21/5000)^(1/20)-1)*2

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