What should be an easy finance problem I can't figure out
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What should be an easy finance problem I can't figure out
Posted by redneck on 4/5 at 8:48 am
My brain is fried right now and this is the last problem I need to learn for this test, please help me out here, I have the answer from the solution manual just no clue how to do it

quote:

You borrow $85,000 and promise to pay back $201,229 and the end of 10 years, Find the Interest Rate



thanks to anyone who can help



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Posted by TheHiddenFlask on 4/5 at 9:01 am to redneck
PV 85000
FV 201229
N 10
PMT 0

cpt int

9.00%



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Posted by redneck on 4/5 at 9:08 am to TheHiddenFlask
Ah wow I was looking way too far into that, thanks


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Posted by Im4datigers on 4/5 at 9:12 am to redneck
wow....might want to pick another major


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Posted by MakeMoney on 4/5 at 4:03 pm to Im4datigers
quote:

wow....might want to pick another major





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Posted by Rockyn on 4/5 at 4:09 pm to Im4datigers
quote:

wow....might want to pick another major



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Posted by Rockyn on 4/5 at 4:11 pm to TheHiddenFlask
quote:

PV 85000
FV 201229
Sir I don't see a minus sign, we're going to have to ask you to retake 3715/6.


This post was edited on 4/5 at 4:12 pm

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Posted by MikeBRLA on 4/5 at 4:42 pm to Rockyn
quote:

Sir I don't see a minus sign, we're going to have to ask you to retake 3715/6.


Nice catch... the money is only flowing one way



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Posted by TheHiddenFlask on 4/5 at 4:48 pm to MikeBRLA
PV is coded in Red, you have to have a premium membership to see it.




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Posted by sstig on 4/5 at 4:49 pm to MikeBRLA
buy and learn to use an old HP12C. You will amaze and confound your friends and family with your awsomeness

This post was edited on 4/5 at 4:50 pm

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Posted by TheHiddenFlask on 4/5 at 5:14 pm to sstig
quote:

buy and learn to use an old HP12C. You will amaze and confound your friends and family with your awsomeness


That's what all the old investment bankers in my office use. Does it have some awesome extra functionality?



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Posted by Tiger4Ever on 4/5 at 8:18 pm to TheHiddenFlask
quote:

Does it have some awesome extra functionality?


I think Black Scholes is programmed into it somehow....didn't find that out until the final in my Derivatives class.

FML

Now I use one everyday. In fact, I actually have two at work.



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Posted by Tiger4Ever on 4/5 at 8:21 pm to Tiger4Ever
Here's the Instruction Manual

I think its about 211 pages.




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Posted by CoolHand on 4/5 at 10:30 pm to Tiger4Ever
You could also install the port for your phone. I've got the HP48 simulator on mine. What a classic.


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Posted by kfizzle85 on 4/5 at 11:19 pm to Tiger4Ever
You can program that into a BAII if you want to. I can't, but it can be done. Thankfully I never leave the confines of the great Excel.


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Posted by LSUIEGRAD13 on 4/6 at 3:18 am to kfizzle85
WOW! I didn't know SELU had the capability to fry a brain.


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Posted by MikeBRLA on 4/6 at 12:49 pm to kfizzle85
quote:

You can program that into a BAII if you want to


It wasn't that hard...I still have mine cerca 1995.

LINK



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Posted by gatorsimz on 4/6 at 4:23 pm to redneck
85,000= 201,229/(1+R)^10
Solve for R.

85,000(1+R)^10=201,229
(1+R)^10= 201,229/85,000
(1+R)^10= 2.3674
1 + R= 10thSQROOT(2.3674)
1 + R= 1.09
R= .09



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