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Someone offers to sell to you a financial contract that will pay $150 at the end of each of the next five years, plus an
Someone offers to sell to you a financial contract that will pay $150 at the end of each of the next five years, plus an additional $500 at the end of the fifth year. If they will sell the contract for $950, what rate of return are they offering on the investment?
7.7% | ||
9.6% | ||
10.7% | ||
31.6% | ||
insufficient information to estimate a return rate |
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