At the end of each year for the next 10 years you will receive cash flows of $51. The initial investment is $321. What rate of return are you expecting from this investment?

Question

Quizplus · Accepted Answer

The correct answer is A because the rate of return is 9.44%. This can be calculated using the formula: Rate of return = (Cash flows / Initial investment) * 100. In this case, the rate of return is ($51 / $321) * 100 = 9.44%.

At the End of Each Year for the Next 10