I sign a contract that guarantees me an immediate payment of $2 000, but then I have to invest $800 a year for ten years. At the end of the tenth year, I get a further payment of $8 000. If I can invest money at 10% interest, what is my approximate external rate of return on the contract?

Answer rating: 100% (QA)

To calculate the external rate of return on the contract we need to determine the present value PV o... View the full answer