Doris Wade purchased a condominium for $45,000 in 1980. Her down payment was $10,000. She financed the remaining amount as a $35,000, 35-year mortgage at 6%, compounded monthly. Her monthly payments are $200. It is now 2000 (20 years later) and Doris has sold the condominium for $100,000, immediately after making her 240th payment on the unit. Find her effective annual internal rate of return on this investment. Choose the closest answer below. O A. 6.4% B. 8.5% C. 4.4% D. 2.3%

Doris Wade purchased a condominium for $45,000 in 1980. Her down payment was $10,000. She financed the remaining amount as a $35,000, 35-year mortgage at 6%, compounded monthly. Her monthly payments are $200. It is now 2000 (20 years later) and Doris has sold the condominium for $100,000, immediately after making her 240th payment on the unit. Find her effective annual internal rate of return on this investment. Choose the closest answer below. O A. 6.4% B. 8.5% C. 4.4% D. 2.3%

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 25PROB

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