Reference no: EM133560828

Question: Generic numerical entry instructions: Enter only your final numerical answer, rounded and expressed as requested and the only non-number you should ever enter (if appropriate) is either a period as in 12.34 or a minus sign immediately in front of an answer to denote a negative number. The system will insert a comma for you for large numbers. Do not include an equals sign, dollar sign, percent sign, quotes, a space, any text (e.g., do not type "The answer is"), or punctuation (except the period or minus sign if appropriate). For example, if asked to round to the nearest 2 decimal places, $1,234.567 should be entered as 1234.57, not as $1,234.57 with the dollar sign, not as -1234.56 which is rounded incorrectly, and if the answer were actually negative, then use a minus sign instead of entering (1234.57) using parentheses. If asked for the nearest integer, enter 1235 (note the rounding) and nothing else. If a rate of return of 12.365% is to be expressed in decimal format rounded to four decimal places, then the only as-requested answer is 0.1237, not 0.12365, not 12.37, not 12.365, not 12.3650, or any other answer). Please read again how your answer is to be expressed before entering it and enter it as requested.

Suppose the present value of $950 to be received 10 years from today is $699. What is the annual interest rate that is being used to calculate the present value? Express your answer rounded and accurate to FOUR decimal places. (E.g., 12.1583% would be expressed correctly as 0.1216).