[SPLIT] Find eff. interest rate for $7.00 now, $8.10 in 3 yrs

bunch

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Sep 28, 2008
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Hello to all , I would like to know if any one can help me with effective annual Interest rate
1. If you have $7.00 now and $8.10 in 3 years, what is the effective annual interest rate?

Can someone help me to solve this problem, maybe walk me through the work. Thanks
 
Re: Total Interest Formula: loan amt $5K, 4.64% APR, 174 mos.

i = effective annual interest rate

7(1 + i)^3 = 8.1

(1 + i)^3 = 8.1 / 7

1 + i = (8.1 / 7)^(1/3)

I'll let you finish it.

NOTE: next time, start your own thread; not kosher to highjack somebody else's...
 
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