Question: can someone please explain how to get the return on the investment? I've been trying to get the 40.4% from the answer key but I

can someone please explain how to get the return on the investment? I've been trying to get the 40.4% from the answer key but I can't seem to get it.

You invest $500 today and an additional investment of $500 three years from today. Discount rate is 3%. You expect to receive the following cash flows:

End of Year 1 $200

End of Year 2 $400

End of Year 3 $500

End of Year 4 $600

Refer to the cash flows above. What is the return on your investment?

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