Find the interest rate implied by the following combinations of present and future values: Present Value Years Future Value Interest Rate
$310 12 496 %
138 5 194 %
210 8 210 %

The interest rates implied by the combinations of present and future values are:

Present Value   Years   Future Value   Interest Rate

$310                     12             496                 3.994%

 138                      5              194                 7.049%

210                      8              210                  -0.000%

Step-by-step explanation:

a) Data and Calculations:

Present Value   Years   Future Value    Interest Rate

$310                     12             496                 3.994  %

 138                      5              194                  7.049%

210                      8              210                  -0.000%

b) You will need an annual return rate of 3.994% to reach the future value of $496.00.

FV (Future Value)$496.00

PV (Present Value)$310.00

N (Number of Periods)12.000

I/Y (Interest Rate)3.994%

PMT (Periodic Payment)$0.00

Starting Investment$310.00

Total Principal$310.00

Total Interest$186.00

c) You will need an annual return rate of 7.049% to reach the future value of $194.00.

FV (Future Value)$194.00

PV (Present Value)$138.00

N (Number of Periods)5.000

I/Y (Interest Rate)7.049%

PMT (Periodic Payment)$0.00

Starting Investment$138.00

Total Principal$138.00

Total Interest$56.00

d) You will need an annual return rate of -0.000% to reach the future value of $210.00.

FV (Future Value)$210.00

PV (Present Value)$210.00

N (Number of Periods)8.000

I/Y (Interest Rate)-0.000%

PMT (Periodic Payment)$0.00

Starting Investment$210.00

Total Principal$210.00

Total Interest$-0.00

5√3−2√3 is your answer