× Didn't find what you were looking for? Ask a question
Top Posters
Since Sunday
a
5
k
5
c
5
B
5
l
5
C
4
s
4
a
4
t
4
i
4
r
4
r
4
Home Q & A Board Science-Related Homework Help Mathematics
New Topic  
Catracho Catracho
wrote...
Posts: 529
Rep: 2 0
5 years ago
Hank made payments of $162 per month at the end of each month for 30 years to purchase a piece of property. He promptly sold it for $151,678. What annual interest rate would he need to earn on an ordinary annuity for a comparable rate of return?


Hank would need an annual interest rate of
  %.?
(Round to the nearest hundredth as needed.)
Read 273 times
1 Reply

Related Topics

Replies
wrote...
#1
Educator
5 years ago
Again, use the annuity formula:

\(\frac{162\left[(1+i)^{30\times 12}-1\right]}{i}=151678\)

Simplify a little bit:

\(\frac{(1+i)^{30\times 12}-1}{i}=\frac{151678}{162}\)

After solving for \(i\) via whatever method you're comfortable with (I chose graphing), you should get 0.005, and as a percent, that's 0.50% interest.
New Topic      
Quick Reply
Explore
Post your homework questions and get free online help from our incredible volunteers
  1333 People Browsing
 129 Signed Up Today
Start New Topic Take the Tour CoursesNew Study Tools Topics Trending Browse by Textbook
Related Images
  
 82
  
 293
  
 267
Your Opinion
What percentage of nature vs. nurture dictates human intelligence?
Votes: 431
Previous poll results: Which is the best fuel for late night cramming?