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 $10,000 at the end of the 5th year.What is the expected rate of return on this investment?
A)6.77%
B)7.13%
C)7.50%
D)7.88%
E)8.27%

Question

Quizplus · Accepted Answer

The Answer of 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 $10,000 at the end of the 5th year.What is the expected rate of return on this investment?
A)6.77%
B)7.13%
C)7.50%
D)7.88%
E)8.27%

Your Father Paid $10,000 (CF at T = 0)for an Investment