Problem:
The Acme Company must solve a series of five problems that require you to apply the concept of "time value of money," or TVM. The five problems are listed below. Solving them will require the use of Microsoft Excel. Before you begin your work, each student is to select a unique nine-digit random number that contains no zeros, no "patterns," and should use most of the digits between one and nine. This value will be referred to as the student unique number (SUN). Further, digits within the SUN are read from left to right. For example, if the SUN = 123456789, the first digit = 1, the second digit = 2, etc. Please note that the interest rate used in all questions represents an annual rate and all dollar figures are in whole dollars (not dollars and cents).
As part of a new labor contract, Acme has agreed to make a one-time contribution of $1,000,000 to the construction of a new physical fitness facility for its employees. It is estimated that in E years (E = 10 + the fifth digit of SUN) the total cost of the new gym will be $1,850,000. What annual percentage interest rate must the initial contribution earn to attain the required amount in E years? (Note: your answer should be accurate to two decimal places - e.g., 5.79%.)