Jed wants to borrow $1,000 from you. He is proposing to repay you with three annual payments

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Jed wants to borrow $1,000 from you. He is proposing to repay you with three annual payments of $341.59 starting one year from now. In addition, he will make a final lump-sum payment of $160 three years from today.

What rate of return are you earning on the loan?

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Accounting Texts and Cases

ISBN: 978-1259097126

13th edition

Authors: Robert Anthony, David Hawkins, Kenneth Merchant

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Posted Date: Apr 19, 2023 03:50 AM

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Jed wants to borrow $1,000 from you. He is proposing to repay you with three annual payments

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To find the rate of return on the loan we can use the present value formula and solve for the in... View the full answer

Accounting Texts and Cases

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