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An investment that currently sells for $120 makes payments every year forever, which grow at 7%...

An investment that currently sells for $120 makes payments every year forever, which grow at 7% annually. If the next payment amount is $6, what is the annual return on this investment?

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Expert Solution

rate positively ..

Computation of annual rate of return
Rate of return = 12.00%
6/120+7%
ans = 12.00%

jeff jeffy answered 2 years ago
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