9 Implied interest rate and period 6 09 8 26 Consider the
Last updated: 6/12/2023
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9 Implied interest rate and period 6 09 8 26 Consider the case of the following annuities and the need to compute either their expec 9 45 of return or duration 7 00 Raul needed money for some unexpected expenses so he borrowed 4 234 01 from a f of 1 250 at the end of each year The agreement is offering an implied interest rate of agreed to repay the loan in four equal installments Raul s friend Nicholas wants to go to business school While his father will share some of the expenses Nicholas still needs to put in the rest on his own But Nicholas has no money saved for it yet According to his calculations it will cost him 30 044 to complete the business program including tuition cost of living and other expenses He has decided to deposit 4 200 at the end of every year in a mutual fund from which he expects to earn a fixed 7 rate of return It will take approximately for Nicholas to save enough money to go to business school