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Your father paid $10,000 ( CF at t=0 ) for an investment that promises to pay $625 at the end of each of the next
Your father paid $10,000 ( CF at t=0 ) for an investment that promises to pay $625 at the end of each of the next 5 years, then an additional lump sum payment of $12,500 at the end of the 5 th year. What is the expected rate of return on this investment? a. 10.95% b. 10.32% =.5.00% d. 6.25% e. 9.34%
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