What annual interest rate must they earn

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Q1. Ms. Sodaba wishes to borrow $20,000 for three years. A group of individuals agrees to lend her this amount if she contracts to pay them $26,000 at the end of the three years. What is the implicit compound annual interest rate implied by this contract (to the nearest whole percentage)?

Q2. You have been offered a note with four years to maturity, which will pay $3,000 at the end of each of the four years. The price of the note to you is $10,200. What is the implicit compound annual interest rate you will receive (to the nearest whole percentage)?

Q3. Sales of the P.J. Cramer Company were $300,000 this year, and they are expected to grow at a compound rate of 15% for the next eight years. What will be the sales figure at the end of each of the next eight years?

Q4. Your parents will retire in 28 years. They currently have $350,000, and they think they will need $1 million at retirement. What annual interest rate must they earn to reach their goal, assuming they don't save any additional funds?

Reference no: EM132950895

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