F = A(F/A,i%,5) 451,000 = 40,000(F/A,i%,5) (F/A,i%,5) = 11.2750 Interpolate between 40% and 50% interest tables or use Excel’s RATE function By RATE, i = 41.6%
What will be an ideal response?
Bonus/year = 6(3000)/0.05 = $360,000
1,200,000 = 360,000(P/A,i,10)
(P/A,i,10) = 3.3333
i = 27.3%
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