Your sister 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 $9,000 at the end of the 5th year. What is the expected rate of return on this investment? Select the correct answer. O a. 8.12% O b. 2.12% O c. 4.52% O d. 3.32% O e. 5.72%

Your sister 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 $9,000 at the end of the 5th year. What is the expected rate of return on this investment? Select the correct answer. O a. 8.12% O b. 2.12% O c. 4.52% O d. 3.32% O e. 5.72%

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 22P

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