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:

Firm Offer

A firm offer is a binding proposal in contract law that cannot be withdrawn for a certain period of time by the offering party.

Breach of Contract

The failure to perform any term of a contract, written or oral, without a legitimate legal excuse.

Merchant

An individual or business involved in the wholesale or retail sale of goods.

Firm Offer

A proposal in business transactions that remains valid for a specified period and cannot be revoked during that time.