This test has a time limit of 2 hours.This test will save and submit eutomatical

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This test has a time limit of 2 hours.This test will save and submit eutomatically when the time epires Warnings appear when half the time, 5 minutes, 1 minute, and 30 seconds remain. Timed Test Multiple Attempts Not allowed. This test can only be taken once. test must be completed in one sitting Do not leave the tost before clicking Save and Submit Remaining Time: 1 hour, 26 minutes, 08 seconds. Question Completion Status: Moving to another question will save this response uestion 4 An investment in a new handling equipment would cost $90,000 and save $20,000 per year for 5 years. What is the nominal annsual interest rate earned in this investment? is 1.7% i 3.7% i 2.7% > Moving to another question will save this response

Explanation / Answer

assume annual interest rate earned=i

90000=20000/(1+i)^1+20000/(1+i)^2+20000/(1+i)^3+20000/(1+i)^4+20000/(1+i)^5

use hit and trial method to find the value of i that makes both side equal

after trying many values of i, we get i=3.62% or 3.7%

the above is answer..

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