Yahoo Answers is shutting down on May 4th, 2021 (Eastern Time) and beginning April 20th, 2021 (Eastern Time) the Yahoo Answers website will be in read-only mode. There will be no changes to other Yahoo properties or services, or your Yahoo account. You can find more information about the Yahoo Answers shutdown and how to download your data on this help page.

Time Value of Money Problem Accounting?

You have deposited $6,728 in a special account that has a guaranteed interest rate. If you withdraw $2,300 at the end of each year for 7 years, you will completely exhaust the balance in the account. The guaranteed interest rate is closest to:

34%

42%

17%

30%

I got 34% when i took 2330/.34 is this correct?

1 Answer

Relevance
  • Don G
    Lv 7
    8 years ago
    Favorite Answer

    APR would be 28%. PV 6,728, N 7, Annuity (PMT) 2,300

Still have questions? Get your answers by asking now.