Investment a will return $2000 a month for 7 years. I pay $125000 for it. What rate of return will i get? (yearly percent)
Added by Jermaine E.
Step 1
Step 1: Calculate the total return over 7 years - $2000 per month for 12 months in a year = $24,000 per year - Total return over 7 years = $24,000 * 7 = $168,000 Show more…
Show all steps
Your feedback will help us improve your experience
Kathleen Carty and 85 other Principles of Accounting educators are ready to help you.
Ask a new question
Labs
Want to see this concept in action?
Explore this concept interactively to see how it behaves as you change inputs.
Recommended Videos
What annual rate of return is earned on a $1,000 investment when it grows to $1,800 in six years?
Kathleen C.
You pay $78.35 for an investment that promises to pay you $100 per year for the next five years. What annual rate of return will you earn on this investment?
Oluwadamilola A.
What is the annual percentage yield of an investment that pays 10% APR compounded monthly? What if it was compounded daily?
Danielle F.
Recommended Textbooks
Horngren’s Cost Accounting
Cost Accounting A Managerial Emphasis
Principles of Accounting Volume 1: Financial Accounting
Transcript
18,000,000+
Students on Numerade
Trusted by students at 8,000+ universities
Watch the video solution with this free unlock.
EMAIL
PASSWORD