Note: the Calculations for This Question Were Done Using Excel's

question 163

Essay

Note: The calculations for this question were done using Excel's RATE function.
A vacation property valued at $62 000.00 was bought for 40 payments of $2150.00 due at the beginning of every six months. What nominal rate of interest was charged?

---

Definitions:

Negative Linear Relationship

A type of relationship between two variables where one variable increases as the other decreases, and this change is consistent.

Scatter Diagram

A graphical representation where two variables are plotted along two axes, aiming to show their relationship or correlation.

Linear Relationship

A relationship between two variables where a change in one variable is associated with a proportional change in the other, represented graphically by a straight line.

Negative Linear Relationship

A relationship between two variables where one variable increases as the other decreases, indicated by a negative correlation coefficient.