1 Answered Questions for the topic Present Value

01/30/20

How is "i" computed in the following problem?

Calculate the compound interest rate. Compound interest is calculated based on the change in the cost index over the 4-yr period:  PV=FV(1+i)4362=3684(1+i)^44362/3684=(1+i)^41.18404=(1+i)^4i=4.31%
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