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Calculating annual rate of return

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Three years ago, Frank signed a 5 year promissory note for $10,000 plus interest at 12% compounded monthly.

a) Helen is willing to pay $13,000 for the note. Calculate Helen's annual rate of return compounded quarterly?

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Solution Summary

Solution describes the steps to calculate annual rate of return.

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Number of periods=n=3 years=3*4=12 quarters
Initial amount=P=$10000
Final ...

Solution provided by:
Lokesh Jain, MSc
Education
  • BEng (Hons) , Birla Institute of Technology and Science, India
  • MSc (Hons) , Birla Institute of Technology and Science, India
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