Question
Your neighbour offers an investment opportunity that will pay a lump sum of R820 000 five years from today (at the end of the year).
Your neighbour offers an investment opportunity that will pay a lump sum of R820 000 five years from today (at the end of the year). The investment requires a single payment of R70 000 today at the end of the day. What is the annual nominal rate of return on this investment?
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Principles Of Finance With Excel
Authors: Simon Benninga, Tal Mofkadi
3rd Edition
0190296380, 9780190296384
