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Unformatted text preview: 30,000 FV = 45,000 Use the RATE formula: RATE(nper,pmt,pv,fv) NPER = 2 Compute RATE = 22.47% You have $30,000 to invest and you need $45,000 for a down payment and closing costs on a house. If you want to buy the house in 2 years, what rate of interest do you need to earn? (Note that the rate will display as a whole percent, you need to format the cell to see the decimal places.) Note a negative sign was entered before the cell reference for the FV to maintain the sign convention. What are you looking for? PV = 15,000 FV = 25,000 Use the NPER formula: RATE = 9%(Same as .09) NPER(rate,pmt,pv,fv) Compute NPER = 5.92759years You have $15,000 to invest right now and you figure you will need $25,000 to buy a new car. If you can earn 9% per year, how long before you can buy the car?...
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This note was uploaded on 10/25/2011 for the course ECON 393 taught by Professor D during the Spring '10 term at Rutgers.
 Spring '10
 D

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