Assume the following future values will be received at the end of each year.What is the interest rate if the future value of these amounts at the end of year 3 is equal to $2,006?
Yr.1 = $400; Yr.2 = $500; Yr.3 = $1,000
A)6.5%
B)6.8%
C)7.0%
D)8.0%
E)8.9%

Question

Assume the following future values will be received at the end of each year.What is the interest rate if the future value of these amounts at the end of year 3 is equal to $2,006?
 Yr.1 = $400; Yr.2 = $500; Yr.3 = $1,000
A)6.5%
B)6.8%
C)7.0%
D)8.0%
E)8.9%

Quizplus · Accepted Answer

The Answer of Assume the following future values will be received at the end of each year.What is the interest rate if the future value of these amounts at the end of year 3 is equal to $2,006?
 Yr.1 = $400; Yr.2 = $500; Yr.3 = $1,000
A)6.5%
B)6.8%
C)7.0%
D)8.0%
E)8.9%

Assume the Following Future Values Will Be Received at the End