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Unformatted text preview: rate or interest rate is the same for each participant. Calculate T . 14. Cong, Jennifer, and Yifei enter into a financial arrangement. Cong agrees to pay Jennifer 3000 today. He also agrees to pay Yifei 1000 at the end of one year. At the end of three years, Yifei will pay Cong 4000. At the end of two years, Jennifer will pay X to Yifei and 1000 to Cong. Using the bottom line approach, the annual yield rate or interest rate is the same for Cong and Yifei. Calculate X . Answers: 12. 10.6682% 13. 6 years 14. 2573.56...
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- Spring '08