If you owe $5,000 today and will repay it with 8 annual payments of $900 beginning next year, what is the annual interest rate, compounded annually, that you are paying?
Click on the arrows to vote for the correct answer
A. B. C. D. E.Explanation
On the BAII Plus, press 8 N, 5000 PV, 900 +/- PMT, 0 FV, CPT I/Y. On the HP12C, press 8 n, 5000 PV, 900 CHS PMT, 0 FV, i. Note that the PMT must be entered with a sign that is opposite that given the PV.