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An insurance firm agrees to pay you $3,021 at the end of 14 years if you pay premiums of $194 per year at the end
An insurance firm agrees to pay you $3,021 at the end of 14 years if you pay premiums of $194 per year at the end of each year for 14 years. Find the internal rate of return to the nearest whole percentage point. Assuming you normally earn a return of 7 percent on your investments, is this a good deal or a bad deal?
1.62%; bad deal
1.62%; good deal
1.82%; good deal
1.82%; bad deal
2.02%; bad deal
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