Your investment advisor has offered you an investment that will provide you with a single cash flow

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Your investment advisor has offered you an investment that will provide you with a single cash flow of $10,000 at the end of 20 years if you pay premiums of $200 per year in the interim period. Specifically, the annual premiums begin immediately and extend through the end of Year 19. You then receive the $10,000 at the end of Year 20. Find the internal rate of return on this investment.

Internal Rate of Return
Internal Rate of Return of IRR is a capital budgeting tool that is used to assess the viability of an investment opportunity. IRR is the true rate of return that a project is capable of generating. It is a metric that tells you about the investment...
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Financial Management Principles and Applications

ISBN: 978-0133423822

12th edition

Authors: Sheridan Titman, Arthur Keown, John Martin

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