Start New Topic
  
  
  
  
Top Posters
Since Sunday
6
3
3
3
2
2
2
2
2
2
2
2
New Topic  
wrote...
Express Lane Plus
Posts: 253
Rep: 0 0
A week 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 38 times
1 Reply
Replies
wrote...
Educator
A week 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.
The best way to say thank you is with a positive review:

  https://trustpilot.com/review/biology-forums.com 

Your support goes a long way!


Make a note request here
New Topic      
    
Share This Topic
Similar topics that might interest you...
Computer Studies   A year ago   Ronique   Webrunner   1 Reply   15 Views
Mathematics   A year ago   Lada   rmaccara   1 Reply   20 Views
Mathematics   A year ago   Hillier   Supreme   1 Reply   26 Views
Mathematics   A year ago   majarm   josan   1 Reply   23 Views
4 More


Explore
Post homework questions online and get free homework help from tutors.
Learn More
Improve Grades
Help Others
Save Time
Accessible 24/7
  260 People Browsing
Related Images
 875
 407
 121
Poll
What type of music do you study to?
Country
Rock
Electronic / Pop
I don't listen to music while studying
Classical
Rap / Hip-hop
Other
If you would like to vote in this poll, please login or register