Anthony needed money for some unexpected expenses, so he borrowed $3,289.13 from a friend and agreed to repay the loan in six equal installments of $800 at the end of each year. The agreement is offering an implied interest rate of .
Anthony’s friend, Sachit, has hired a financial planner for advice on retirement. Considering Sachit’s current expenses and expected future lifestyle changes, the financial planner has stated that once Sachit crosses a threshold of $1,121,164 in savings, he will have enough money for retirement. Sachit has nothing saved for his retirement yet, so he plans to start depositing $40,000 in a retirement fund at a fixed rate of 12.00% at the end of each year. It will take years for Sachit to reach his retirement goal.