If you were to invest $2000 today and in return receive $450 anually for 6 years, what is your annual rate of return?
If you were to invest $2000 today and in return receive $450 anually for 6 years, what is your annual rate of return?
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 9EB: If you invest $15,000 today, how much will you have in (for further instructions on future value in...
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If you were to invest $2000 today and in return receive $450 anually for 6 years, what is your annual
Expert Solution
Step 1
N=6
PMT=450
PV=2000
I=?
2000=450/(1+I)+450/(1+I)^2........+450/(1+I)^6
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