What annual interest rate, compounded quarterly, would cause a series of 20 quarterly deposits of $800 to accumulate to $25,000, if the first deposit is made three months from today?
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A. B. C. D. E.D
The value returned by the calculator will be the periodic interest rate which must be multiplied by the number of periods per year to have the correct answer. On the BAII Plus, press 20 N, 0 PV, 800 PMT, 25000 +/- FV, CPT I/Y. Then press x 4 = to see the answer. On the HP12C, press 20 n, 0 PV, 800 PMT, 25000 CHS
FV, i. Then press 4 x to see the answer. Make sure the BAII Plus has the P/Y value set to 1.