An investment today of $25,000 promises to return $10,000 annually for the next three years.What is the approximate real rate of return on this investment if inflation averages 6 percent annually during the period?
A)3.5 percent
B)9.7 percent
C)14.0 percent
D)20.0 percent Solving with financial calculator, the IRR = 9.701%.

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The Answer of An investment today of $25,000 promises to return $10,000 annually for the next three years.What is the approximate real rate of return on this investment if inflation averages 6 percent annually during the period?
A)3.5 percent
B)9.7 percent
C)14.0 percent
D)20.0 percent Solving with financial calculator, the IRR = 9.701%.

An Investment Today of $25,000 Promises to Return $10,000 Annually