interest rateForums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › interest rateThis topic has 1 reply, 2 voices, and was last updated 8 years ago by John Moffat.Viewing 2 posts - 1 through 2 (of 2 total) AuthorPosts December 8, 2015 at 7:00 pm #289284 olasallamMemberTopics: 1Replies: 0☆it’s an ordinary annuity problem its given are pv=2000000 Number of years= 25 years Cash flow or payment = 156000 what is the interest rate? i need the equation of solving. December 9, 2015 at 8:13 am #289448 John MoffatKeymasterTopics: 56Replies: 53857☆☆☆☆☆The 25 year annuity factor will be 2,000,000 / 156,000 = 12.821You could then use the formula for the annuity discount factor that is given to you in the exam to work backwards to find the discount rate.However this could not be asked in the Paper F2 exam.(You could if, for example, it was only a 10 year annuity, because the you could look back using the tables, but not for 25 years.)AuthorPostsViewing 2 posts - 1 through 2 (of 2 total)You must be logged in to reply to this topic.Log In Username: Password: Keep me signed in Log In