A pension fund is making an investment of $112,000 today and expects to receive $1,720 at the end of each month for the next five years. At the end of the fifth year, the capital investment of $112,000 will be returned. Required: What is the internal rate of return compounded annually on this investment? Note: Do not round intermediate calculations and round your final answer to 1 decimal place.

A pension fund is making an investment of $112,000 today and expects to receive $1,720 at the end of each month for the next five years. At the end of the fifth year, the capital investment of $112,000 will be returned. Required: What is the internal rate of return compounded annually on this investment? Note: Do not round intermediate calculations and round your final answer to 1 decimal place.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

ChapterM: Time Value Of Money Module

Section: Chapter Questions

Problem 10RE: If 90,000 is invested in a fund on December 31, 2019, and 5 equal annual withdrawals of 23,138.32...

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