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Rate of interest

You are offered the opportunity to buy a note for $10,000. The note is certain to pay $2000 at the end of each of the next 10 years. If you buy the note, what rate of interest will you receive on this investment (to nearest %)
a. 15%
b. 100%
c. 20%
d. 16%
e. insufficient information to compute

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Solution Summary

The solution explains how to determine the rate of interest given the present and future values

$2.19