Your father paid $10,000 (CF at t = 0) for an investment that promises to pay $750 at the end of each of the next 5 years, then an additional lump sum payment of $10,250 at the end of the 5th year. What is the expected rate of return on this investment?

A. 7.93%
B. 3.16%
C. 10.08%
D. 8.39%
E. 8.83%


Answer: A

Business

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