Your Father Paid $10,000 (CF at T = 0)for an Investment

question 161

Multiple Choice

Your father paid $10,000 (CF at t = 0) for an investment that promises to pay $750 at the end of each of the next 5 years,then an additional lump sum payment of $10,250 at the end of the 5th year.What is the expected rate of return on this investment?

• A) 7.93%
• B) 3.16%
• C) 10.08%
• D) 8.39%
• E) 8.83%

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Definitions:

Maturational Studies

Research studies that focus on how an individual's behavior changes as they age, emphasizing the role of genetic factors and biological processes.

Cancer-Causing Agent

A substance or exposure that can lead to cancer, also known as a carcinogen.

Environmental Pollution

Environmental pollution refers to the contamination of the natural environment by harmful substances, leading to adverse effects on wildlife, habitats, and human health.

Cross-Sequential Design

A research method that combines both longitudinal and cross-sectional design features to compensate for the weaknesses of each, often used in developmental psychology studies.