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

These questions typically use the BA II Plus calculator with the finance functions built in.

Inputs should be as follows:

2ND -> CLR TVM ->

9 -> N ->

600 -> PMT ->

-7426 -> FV ->

CPT -> I/Y

This should give you an answer between 5 and 10. The key is to input either a Negative Future Value or a Negative Payment Value.