Purpose: (L.O. 8) This exercise will give you practice in using a financial calculator to solve problems involving the time value of money.
Interest is the cost of using the money of another entity. Each of the following two situations calls for you to compute the interest rate inherent in a set of facts.
Use a financial calculator to determine at what exact annual rate of interest Jacob must invest the $19,000.
Use a financial calculator to determine what interest rate Elizabeth is paying.