Find the interest rate implied by the following combinations of present and future values: (Leave no cells blank - be certain to enter "0" wherever required. Do not round intermediate calculations. Round your answers to the nearest whole percent.)

Present Value Years Future Value Interest Rate

$ 400 11 $ 684 %

183 4 249 %

300 7 300 %

1. 5%

2. 8%

3. 0%

Explanation:

Computing the interest rate of the following by applying the Rate formula in the excel, which is as:

=Rate (nper, pmt, pv, fv, type)

where

nper is number of years

pmt is monthly payment

pv is present value

fv is future value

type will be 0

So, in case of 1

1. The rate is computed as:

=Rate (nper, pmt, pv, fv, type)

where

nper is 11

pmt is 0

pv is - $400

fv is $684

type is 0

Putting the values above:

=Rate (11,0,-400,684,0)

= 5%

2. The rate is computed as:

=Rate (nper, pmt, pv, fv, type)

where

nper is 4

pmt is 0

pv is - $183

fv is $249

type is 0

Putting the values above:

=Rate (4,0,-183,249,0)

= 8%

3. The rate is computed as:

=Rate (nper, pmt, pv, fv, type)

where

nper is 7

pmt is 0

pv is - $300

fv is $300

type is 0

Putting the values above:

=Rate (7,0,-300,300,0)

= 0%