An investment of $60,000 ten years ago resulted in uniform income of $10,000 per year for the 10-year period. The rate of return on the investment was closest to: (choose one)

(a) 10.6% per year
(b) 14.2% per year
(c) 16.4% per year
(d) 18.6% per year


0 = -60,000 + 10,000(P/A,i*,10)
(P/A,i*,10) = 6.0000

From tables, i* is between 10% and 11%

Answer is (a) 10.6% per year

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