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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 $1000 at the end of the fifth year. If they will sell the contract for $850, what rate of return are they offering on the investment?
7.7 | ||
11.8 | ||
20.02 | ||
20.58 | ||
105.88 | ||
205.88 |
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