Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

**please answer correctly :) I post a lot for this financial mathematics class and they seem to be answered wrong a lot!! 6. On January

**please answer correctly :) I post a lot for this financial mathematics class and they seem to be answered wrong a lot!!

6.

On January 15, 2000, Enterprise A loans $5,000 to Enterprise B and $16,000 to Enterprise C. Enterprise B repays Enterprise A $6,000 on January 15, 2002 and this money is reinvested at a 5% annual effective rate. Enterprise C repays Enterprise A $18,500 on January 15, 2004. What is the annual yield received by Enterprise A over the four-year interval? Find the annual effective interest rates paid by Enterprises B and C. (Round your answers to two decimal places.)

Enterprise A's annual yield = ______%

Enterprise B's annual effective interest rate = ________%

Enterprise C's annual effective interest rate = ________ %

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Accounting questions

Question

Effective Delivery Effective

Answered: 1 week ago