You have $253.05 today.A friend wants to borrow that money from you and pay you back $310 at the end of 3 years.What rate of return (per annum)will you earn from the loan?
A) 7.0%
B) 7.2%
C) 6.8%
D) 7.4%
E) 7.6%

Question

Quizplus · Accepted Answer

i = 11ea7fdb_fc28_a95a_a768_87425f9c6cbf_TB2902_00 - 1
i = 11ea7fdb_fc28_a95b_a768_f96ea8285efb_TB2902_00 - 1 = 7%
Using a financial calculator:
N = 3, PV = -253.05, PMT = 0, FV = 310, cpt I/Y = 7%

You Have $253