Which of the Following Is the Approximate Internal Rate of Return

question 46

Multiple Choice

Which of the following is the approximate internal rate of return for an investment that costs $33,550 and provides a $5,000 annuity for 10 years? (PV of $1 and PVA of $1) (Use appropriate factor(s) from the tables provided.)

• A) 5%
• B) 6%
• C) 8%
• D) 10%

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Definitions:

Time Extension

An additional period given beyond the original deadline or schedule.

Specific Reasons

Detailed and explicit motives or explanations for a particular action, decision, or belief.

Continued Interest

Ongoing engagement and attention toward a subject, activity, or process, demonstrating sustained enthusiasm or concern.

Respond Date

The specific date by which a response to an invitation, offer, or inquiry is required or expected.