Time Value of Money

This can be done by assuming interest rate as x and solving or take a number from the options preferrbaly between 3.46 and 3.6 i.e 3.5% and substituting and solving for it If we assume x as interest rate then 725 * x%* 12/12 + 362.50 *2x*4/12 = 33.50 725x% + 724x%/3 = 33.50 2175x% +725x%=100.5 2900x% = 100.5 x% = 100.5/2900 x% = 3.4655%

Sriram Somayajula

Admin

28-Aug-23 06:41