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

question 16

Multiple Choice

Your sister 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 $10,000 at the end of the 5th year.What is the expected rate of return on this investment?

• A) 6.77%
• B) 7.13%
• C) 7.50%
• D) 7.88%
• E) 8.27%

---

Definitions:

Universal Gravitation

The law of physics that states that every particle attracts every other particle in the universe with a force that is direct between the masses and inversely proportional to the square of the distance between their centers.

Newton

Refers to Sir Isaac Newton, an English physicist, mathematician, and astronomer who is widely recognized as one of the most influential scientists of all time, especially for formulating the laws of motion and universal gravitation.

Transcended Gender

A term referring to the concept of moving beyond traditional societal, cultural, or biological definitions of gender.

Philosopher

An individual who seeks knowledge and understanding about fundamental questions concerning existence, ethics, knowledge, and reason.