Chapter 7 Internal Rate of Return - Oxford University Press

What nominal annual rate of return did the owner receive on her investment? Solution 7-6 Find the rate of return for a $10,000 investment that will pay $1,000/year for 20 years. Solution 10,000 = 1,000(P/A, i%, 20) (P/A, i%, 20) = 10 From interest tables: 7% < i < 8% ∴ interpolate i = 7.77% 7-7 ................
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