Question

# Estimating the annual interest rate with an ordinary annuity. Fill in the missing annual interest rates...

Estimating the annual interest rate with an ordinary

annuity.

Fill in the missing annual interest rates in the following table for an ordinary annuity stream.

 Number of Payments or Years Annual Interest Rate Future Value Annuity Present Value 1010 ​? ​\$0.000.00 ​\$500.00500.00 ​\$2 comma 307.382,307.38 1616 ​? ​\$10 comma 302.6410,302.64 ​\$401.31401.31 ​\$0.000.00 4040 ​? ​\$0.000.00 ​\$2 comma 074.172,074.17 ​\$40 comma 000.0040,000.00 9090 ​? ​\$1 comma 036 comma 494.751,036,494.75 ​\$650.00650.00 ​\$0.000.00
 Number of Payments or Years Annual Interest Rate Future Value Annuity Present Value 1010 nothing​% ​(Round to two decimal​ places.) ​\$0.000.00 ​\$500.00500.00 ​\$2 comma 307.382,307.38
 1616 nothing​% ​ (Round to two decimal​ places.) ​\$10 comma 302.6410,302.64 ​\$401.31401.31 ​\$0.000.00
 4040 nothing​% ​(Round to two decimal​ places.) ​\$0.000.00 ​\$2 comma 074.172,074.17 ​\$40 comma 000.0040,000.00
 9090 nothing​% ​(Round to two decimal​ places.) ​\$1 comma 036 comma 494.751,036,494.75 ​\$650.00650.00 ​\$0.000.00

 no of years Future value annuity present value Formula value 1- 10 0 500 2307.38 Using rate function in MS excel =rate(nper,pmt,pv,fv,type) nper =10 pmt = -500 pv = 2307.38 ,Fv =0 type = 0 RATE(10,500,-2307.38,0,0) 17.26% 2- 16 10302.64 -401.31 0 Using rate function in MS excel =rate(nper,pmt,pv,fv,type) nper =16 pmt = -401.31 pv = 0 ,Fv =10302.64 type = 0 RATE(16,-401.31,0,10302.64,0) 6.00% 3- 40 0 2074.17 -40000 Using rate function in MS excel =rate(nper,pmt,pv,fv,type) nper =16 pmt = -401.31 pv = 0 ,Fv =10302.64 type = 0 RATE(40,2074.17,-40000,0,0) 4.18% 4- 90 1036494.75 -650 0 Using rate function in MS excel =rate(nper,pmt,pv,fv,type) nper =16 pmt = -401.31 pv = 0 ,Fv =10302.64 type = 0 RATE(90,-650,0,1036494.75,0) 5.00%