You recently paid $13,275 for an investment that promises to pay $675 at the end of each of the next 6 years, then an additional lump sum payment of $17.500 at the end of the 6th year. What is the expected rate of return on this investment? O a. 10.52% 0 0.9.28% O c. 13.19% d. 12.26% e. 11.34%
You recently paid $13,275 for an investment that promises to pay $675 at the end of each of the next 6 years, then an additional lump sum payment of $17.500 at the end of the 6th year. What is the expected rate of return on this investment? O a. 10.52% 0 0.9.28% O c. 13.19% d. 12.26% e. 11.34%
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
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![You recently paid $13.275 for an investment that promises to pay $675 at the end of each of the next 6 years, then an additional lump sum payment of
$17,500 at the end of the 6th year. What is the expected rate of retum on this investment?
O a. 10.52%
O b.9.28%
O c. 13.19%
O d. 12.26%
e. 11.34 %](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F009dbd09-7763-434e-9de1-2c4569e3105d%2F3a85b8cb-1ff4-4725-aa44-24eb73615e1e%2Fj6ttb0k_processed.jpeg&w=3840&q=75)
Transcribed Image Text:You recently paid $13.275 for an investment that promises to pay $675 at the end of each of the next 6 years, then an additional lump sum payment of
$17,500 at the end of the 6th year. What is the expected rate of retum on this investment?
O a. 10.52%
O b.9.28%
O c. 13.19%
O d. 12.26%
e. 11.34 %
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