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What is the expected rate of return on investment

Your father paid $10,000 (CF at t = 0) for an investment that promises to pay $750 at the end of each of the next 5 years, then an additional lump sum payment of $13,500 at the end of the 5th year. What is the expected rate of return on this investment?

Answer

	a.	15.23%
	b.	10.46%
	c.	12.39%
	d.	12.91%

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Solution Preview :

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Finance Basics: What is the expected rate of return on investment

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Recent Questions Asked Finance Basics

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Solution Preview :

Prepared by a verified Expert

Finance Basics: What is the expected rate of return on investment

Reference No:- TGS0674213

Recent Questions Asked Finance Basics

Q : How many legal and economic entities are there

Q : How much is bond worth today due to going interest rate

Q : What real amount must deposit each year to achieve goal

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