View the step-by-step solution to:

# 1)Find the interest rate (or rates of return) in the following situation: You borrow \$9,000 and promise to make payments of \$2,684.80 at the end of...

1)Find the interest rate (or rates of return) in the following situation:
You borrow \$9,000 and promise to make payments of \$2,684.80 at the end of each of the next 5 years.

2)Set up an amortization schedule for a \$25,000 loan to be repaid in equal installments at the end of each of the next 5 years. This interest rate is 10%.

3)Sales for Hanebury Corporation's just-ended year were \$12 million. Sales were \$6 million 5 years earlier.
a) at rate did sales grow
b)Suppose someone calculated the sales growth for Hanebury in part a as follows: “Sales doubled in 5 years. This represents a growth of 100% in 5 years; dividing 100% by 5 results in an estimated growth rate of 20% per year.” Explain what is wrong with this calculation

1. Solution
Borrowed Amount = \$ 9000.00
Payment to be made every year = \$ 2684.80
Now we have to calculate such rate so that present value of all the payments becomes
equal to
\$ 9000.00
This is...

### Why Join Course Hero?

Course Hero has all the homework and study help you need to succeed! We’ve got course-specific notes, study guides, and practice tests along with expert tutors.

### -

Educational Resources
• ### -

Study Documents

Find the best study resources around, tagged to your specific courses. Share your own to gain free Course Hero access.

Browse Documents