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Your father paid $10,000 (CF at t = 0) for an investment that promises to pay $750 at the end of each of the next
Your father paid $10,000 (CF at t = 0) for an investment that promises to pay $750 at the end of each of the next 5 years, then an additional lump sum payment of $18,250 at the end of the 5th year. What is the expected rate of return on this investment? O a. 17.90% O b.20.16% O c. 19.03% O d. 15.64% O e. 18.84% Suppose you borrowed $14,000 at a rate of 10.0% and must repay it in 5 equal installments at the end of each of the next 5 years. How much interest would you have to pay in the first year? O a. $1,554.00 O b. $1,316.00 O c. $1,204.00 O d. $1,232.00 O e. $1,400.00
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