Suppose you pay 100000 for an investment that will pay you
Suppose you pay $100,000 for an investment that will pay you $4,000 every six months. You can reinvest the 4,000 at an APR of 5%. Assuming in 10 years you will get back the $100,000, what is the EAR (effective rate of return) on your investment?
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suppose you pay 100000 for an investment that will pay you 4000 every six months you can reinvest the 4000 at an apr of
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