Asked by J

An investment of $7,800 made March 31, 2001 pays $700 at the end of every six months for five years and pays $10,000 on March 31, 2006. What rate of interest was being earned every six months?
Answered by Ms. Sue
700/7800 = 0.09874 = 9.87%

Answered by drwls
You need to consult a "yield to maturity" formula. I get about 23% annual rate.
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