Question 13 A-2, reading 15: “The after tax return requirement to accumulate 2 million in 18 years beginning with an asset base of 1,235,000 and annual outflows of 26,000 is 4.427%” So, I am able to verify it on the calculator (N=18 PV=1235000, PMT -26,000, I/Y=4.427 and when i calcualte FV i do get 2 million), ****BUT the question states how to get the return, so when I enter ( N, PMT, FV and PV, and try to calculate I/Y I get an error, your help will be greatly appreciated on how to get the return of 4.427. Thank you
2nd CLR TVM PV=-1235000 FV=2000000 N=18 PMT=26000 CPT i/Y 4.427%
IH8FSA, I haven’t tried it, but it may have to do with the signs. Make sure you have the + and - in order.
Darn , !! I Totally forgot the -ve for the PV !!!, and ** to keep the pasyment as positive??? Shows how much i remember from last 2 exams!