You invest $100,000 today. You receive $29,656.22 at the end of each year for four years. Determine the annual ROI on the investment, and prove your answer. You may find the following form helpful:
|
Cash Flow at End of Year |
|||||
|
Year |
Investment Balance at Start of Year |
Total Amount |
Earnings at ?% |
Capital Recovery |
Investment Balance at End of Year |
|
1 |
$100,000 |
$29,656 |
|
|
|
|
2 |
|
$29,656 |
|
|
|
|
3 |
|
$29,656 |
|
|
|
|
4 |
|
$29,656 |
|
|
$0 |