(Solving for r of an annuity) You lend a friend $35,000, which your friend will repay in 12 equal annual end-of-year payments of $7,000, with the first payment to be received 1 year from now. What rate of return does your loan receive? The rate of return your loan will receive is %. (Round to two decimal places.)
(Solving for r of an annuity) You lend a friend $35,000, which your friend will repay in 12 equal annual end-of-year payments of $7,000, with the first payment to be received 1 year from now. What rate of return does your loan receive? The rate of return your loan will receive is %. (Round to two decimal places.)
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:(Solving for r of an annuity) You lend a friend $35,000, which your friend will repay in 12 equal annual end-of-year payments of $7,000, with the
first payment to be received 1 year from now. What rate of return does your loan receive?
The rate of return your loan will receive is %. (Round to two decimal places.)
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