Question
I just need to know how they got the benefit number of 23282.44 Computing the interest rates. Annuity $14,217.56 Total amount received 2500*15 = $37,500
I just need to know how they got the "benefit" number of 23282.44
Computing the interest rates.
Annuity $14,217.56
Total amount received 2500*15 = $37,500
Benefit 23282.44
Return per year 23282.44/15
1552.16267
Return 1552/14217.56
10.91%
Therefore the return will be he Return will be 10.91%
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Fundamentals of Financial Management
Authors: Eugene F. Brigham, Joel F. Houston
11th edition
324422870, 324422873, 978-0324302691
