Jones borrows 1000 for five years simple interest is


Jones borrows $1,000 for five years. Simple interest is charged. The accumulated value at the end of the term will be $1, 330. The following effective rates of interest and discount over the same five year time period will produce the same accumulated value

Year             Annual Effective Rates of Interest/Discount

1                              Discount of 9%

2                              Interest of 4%

3                              Interest of 4%

4                              Discount of X%

5                              Discount of 3%

What is the discount rate X?

Request for Solution File

Ask an Expert for Answer!!
Financial Management: Jones borrows 1000 for five years simple interest is
Reference No:- TGS02757316

Expected delivery within 24 Hours