Use technology and the future value formula to find i. FV=​$7,426​; PMT=​$600​; n=9​; i=​?

Question

Use technology and the future value formula to find i.

FV=​$7,426​; PMT=​$600​; n=9​; i=​?

i= _______

​(Round to two decimal places as​ needed.)

Answer 1

The problem says to use technology, so I used Excel. I calculated FV using the formula FV(i,9,-600) and used solver on the interest rate to set the FV to 7426. i = 7.79%

Answer 2

Here's the formula:

fv=p(1+int/c)^(nt)

future value

principal

int

compound

years

times/yr