Yourdad would like to finance you tocomplete college. He agrees to lend you $12,000 on your 21st

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Yourdad would like to finance you tocomplete college. He agrees to lend you $12,000 on your 21st birthday when you join collegeand agrees to increase the amount lent each year by $2,000 for the next 3 years. If you have to pay him back $18,000 per year on your 28th birthday to your 32nd birthday, what internal rate of return per year compounded yearly did you end up paying for the amount borrowed from your dad?

Posted Date: May 11, 2024 03:08 AM

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Yourdad would like to finance you tocomplete college. He agrees to lend you $12,000 on your 21st

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To calculate the internal rate of return IRR for this problem we will use the formula 0 PV CF11r CF2... View the full answer

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