finance

An investment offers to pay you a $10,000 a year for five years. If it costs $33,520, what will be your rate of return on the investment?

  1. 👍
  2. 👎
  3. 👁
  1. ijgijgegsg

    1. 👍
    2. 👎
  2. 15%

    1. 👍
    2. 👎

Respond to this Question

First Name

Your Response

Similar Questions

  1. math

    The balance on a car loan after 4 years is $8,996.32. The interest rate is 5.6% compounding annually. What was the initial value of the loan? An investment made in the stock market decreased at a rate of 4% per year for 5 years.

  2. present value

    An investment pays you $20,000 at the end of this year, and $10,000 at the end of each of the four following years. What is the present value (PV) of this investment, given that the interest rate is 4% per year?

  3. Math

    Ernie invested $5,000 in an account for 3 years at 4% interest compounded quarterly Inflation over the period averaged 2% per year. a. Calculate the value of the investment after 3 years b. find the real rate of return on the

  4. Finance

    5. John and Daphne are saving for their daughter Ellen's college education. Ellen just turned 10 (t=0), and she will be entering college 8 years from now (at t=8). College tution and expenses at State U. are currently $14,500 a

  1. Finance

    Thomson Media is considering some new equipment whose data are shown below. The equipment has a 3 year tax life and would be fully depreciated by the straight line method over 3 years but it would have a positve pre-tax salvage

  2. Algebra

    An investment grows according to the exponential equation y = 15,000 ยท 1.07x, where x is the number of years invested. Which of the following statements is true? A. The investment will continue to grow at a rate of 7% per year

  3. Business Finance

    Vandalay Industries is considering the purchase of a new machine for the production of latex. Machine A costs $2,190,000 and will last for 7 years. Variable costs are 38 percent of sales, and fixed costs are $122,000 per year.

  4. math

    The balance on a car loan after 4 years is $8,996.32. The interest rate is 5.6% compounding annually. What was the initial value of the loan? An investment made in the stock market decreased at a rate of 4% per year for 5 years.

  1. Economics

    I got a lot of problems with this exercise. I really hope you can help me. Thanks! Samantha Roberts has a job as a pharmacist earning $30.000 per year, and she is deciding whether to take another job as the manager of another

  2. Math

    A firm is evaluating two machines. The first costs $250,000 and will require annual maintenance of $30,000 per year for 10 years. At the end of 10 years, the salvage value will be $75,000. The second machine costs $400,000 and

  3. Finance

    Thomson Media is considering some new equipment whose data are shown below. The equipment has a 3 year tax life and would be fully depreciated by the straight line method over 3 years but it would have a positve pre-tax salvage

  4. Math

    The Problem: You win the grand prize on a game show. You have the following choices: Option 1: $1-million dollars paid as a $25 000 annuity every year over 40 years. Option 2: The present value of option 1 if the current interest

You can view more similar questions or ask a new question.