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Jed wants to borrow $1,000 from you. He is proposing to repay you with three annual payments of $347.03 starting one year from now. In

Jed wants to borrow

$1,000

from you. He is proposing to repay you with three annual payments of

$347.03

starting one year from

now.

In addition, he will make a final lump-sum payment of

$120

three years from

today.

What rate of return are you earning on the loan?

What rate of return are you earning on the loan?

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Authors: Jeff Madura, Hardeep Singh Gill

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978-0134724713

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