Chapter 5.2, Problem 31E

To determine

The value of internal rate of return $r$ on the investment, where investment of $\$2000$ yields payments of $\$1200$ in $3$ years, $\$800$ in $4$ years, and $\$500$ in $5$ years. The sum of the present values of the three parts must total $\$2000$. This yields the equation $2000=1200e^{-3r}+800e^{-4r}+500e^{-5r}$.