Time Value of Money

namratatwr94
Posts: 6
Joined: Mon Apr 10, 2017 4:44 am

Time Value of Money

Postby namratatwr94 » Fri Jun 02, 2017 8:39 am

Please find the question in the attachment.
The answer of this is provided as 15.4%. Could you explain its computation...
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edupristine
Finance Junkie
Posts: 822
Joined: Wed Apr 09, 2014 6:28 am

Re: Time Value of Money

Postby edupristine » Wed Jul 19, 2017 3:07 pm

3.5 = 3*(e^r)
(e^r) = 3.5 / 3 = 1.17
Ln (e^r) = Ln (1.17)
r = 15.41%

namratatwr94
Posts: 6
Joined: Mon Apr 10, 2017 4:44 am

Re: Time Value of Money

Postby namratatwr94 » Thu Sep 14, 2017 5:48 am

@edupristine Thanks for the clarification!!


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