An investment producing cash flows in the amount of $1,200 per month is undertaken for a period

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An investment producing cash flows in the amount of $1,200 per month is undertaken for a period of 28 months. The investor pays $24,000 for the investment and the contract stipulates that investment returns must be reported on a basis equivalent with annual compounding. Given that the investment is sold after 28 months, what would be the equivalent annual compound rate of interest reported to the investor? What would be the annual rate compounded monthly for this investment?

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Real Estate Finance and Investments

ISBN: 978-0073377339

14th edition

Authors: William Brueggeman, Jeffrey Fisher

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