Solved: Determining the rate of return earn on investment, Finance Basics

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Determining the rate of return earn on investment

Problem:

Assume that you own an annuity that will pay you $15,000 per year for 12 years, with the first payment being made today. You need money today to start a new business, and your uncle offers to give you $120,000 for the annuity. If you sell it, what rate of return would your uncle earn on his investment?

Please show the calculation.

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Finance Basics: Determining the rate of return earn on investment

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Finance Basics: Determining the rate of return earn on investment

Reference No:- TGS02035375

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