5. Find the annual interest rate (you must convert the period rate to an annual rate) assuming $40,000 amounts to $91,680 in 15 years with monthly compounding. N = I/Y = PV = PMT = FV = ANS: The annual interest rate is ___________________________.
Added by Noah M.
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We can use the formula for compound interest: $FV = PV(1 + r)^n$ Where: - $FV$ is the future value ($91,680) - $PV$ is the present value ($40,000) - $r$ is the monthly interest rate - $n$ is the number of periods (15 years * 12 months = 180 months) We can Show more…
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