If Jasmine deposits $1,000 and
expects to have $3,172.17 at the end of 15th year. The bank compounds interest annually.
If there is no additional
deposit, what is the annual interest rate paid by the bank?
When you try
to find out interest rate , you have to
distinguish negative from positive cash flow.
- FV = $3172.17
- PV = -$1000
- PMT = 0
- N = 15
- I = ?8%(annual