You recently paid $13,500 for an investment that promises to pay S675 at the end of each of the next 6 years, then an additional lump sum payment of $14,500 at the end of the 6th year. What is the expected rate of return on this investment? a. 13.1% b.9.5% c. 6.1% d. 11.3% e. 10.2%

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
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You recently paid $13,500 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
$14,500 at the end of the 6th year. What is the expected rate of return on this investment?
O a. 13.1%
b.9.5%
c. 6.1%
d. 11.3%
e. 10,2%
Transcribed Image Text:You recently paid $13,500 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 $14,500 at the end of the 6th year. What is the expected rate of return on this investment? O a. 13.1% b.9.5% c. 6.1% d. 11.3% e. 10,2%
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