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What rate of interest was used in the present value

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Today, Stacy is investing $50,000 at 6.0 percent, compounded annually, for 7 years. How much additional income could he earn if he had invested this amount at 7 percent, compounded annually? (Answer should use positive value with two decimal points (no dollar sign). The answer is considered to be correct if it is within +/-2.00 from the precise value)

You have been told that you need $16,000 today in order to have $100,000 when you retire 35 years from now. What rate of interest was used in the present value computation? Assume interest is compounded annually. (Keep two decimal points and do not add the % sign. For example, if you get 4.56%, enter 4.56 as the answer. Your answer is considered correct if it is within +/- 0.02 from the precise value)

Reference no: EM132819933

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