You bought a racehorse that has had a winning streak for six years, bringing in $250,000...
You bought a racehorse that has had a winning streak for six years, bringing in $250,000 at the end of each year before dying of a heart attack. If you paid $1,155,720 for the horse 4 years ago, what was your annual return over this 4-year period?
Homework Answers
Value paid=1155720
250000/(1+r)^1+250000/(1+r)^2+250000/(1+r)^3+250000/(1+r)^4=1155720
use trial and error method to find r
after trying various values of r, we get r=-5.55% will be answer
the above is answer..
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