
Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Question

Transcribed Image Text:Solving for "Rate"
Solution
This formuala calculates the rate of return when the present value, future value, and number of periods is known
Given Parameters
Present Value
Future Value
Number of Periods
Solution Excel Function
-800
Solve Rate using Manula Formula
1,000
Method for Solving (Excel Formula Function "Rate")
4
1.Solve for "Rate" using the
information provided above (use
xcel Formula)
2.Solve for "Rate" using the
information provided above (use
Manual Formula)
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