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Homework answers / question archive / Rate of return—Annuity What is the rate of return on an investment of $11,323 if the investor will receive $2,100 each year for the next 14 years? The rate of return on the investment, r, is %

Rate of return—Annuity What is the rate of return on an investment of $11,323 if the investor will receive $2,100 each year for the next 14 years? The rate of return on the investment, r, is %

Finance

Rate of return—Annuity What is the rate of return on an investment of $11,323 if the investor will receive $2,100 each year for the next 14 years? The rate of return on the investment, r, is %. (Round to two decimal places.)

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We will use the BA 2 plus financial calculator to find the rate of return using the IRR function. Please press the following keys on your calculator-

CF

2ND CE|C

CFo = -11,323

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C01 = 2,100

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C02 = 2,100

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C03 = 2,100

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C04 = 2,100

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C05 = 2,100

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C06 = 2,100

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C07 = 2,100

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C08 = 2,100

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C09 = 2,100

Down arrow

C10 = 2,100

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C11 = 2,100

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C12 = 2,100

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C13 = 2,100

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C14 = 2,100

CPT IRR

IRR = 16.3094

Rate of return = 16.31%