Annual rate of return
Problem:
What annual rate of return is earned on a $3,200 investment when it grows to $6,900 in twenty years?
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Question1: What is the APR and EAR of your investment?
Actual salvage value is expected to be $8,000 at the end of 4 years. If Wrenn requires a 12 percent after-tax rate of return on the lease, what is the lessor's amount to be amortized? Assume Wrenn's marginal tax rate is 40%.
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