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Susan has been investing $160,000 a year for the past 9 years into Sunshine in a Can, Inc. Today, as the sole shareholder, she sold Sunshine in a Can, Inc. for $2.6 million. What is her rate of return on this investment? Select one: B. 14.42% C. 14.24% D. 14.29% E. 14.13% 2 O Save response
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Answer #1

Period of Deposit = 9 years

Yearly Deposit = $160,000

Future Value = $2.6 million

PV = 0

Calculating YTM,

Using TVM Calculation,

Ct(1r)

Putting Values for YTM,

YTM = 14.24%

So, rate of return on investment = 14.24%

Option C is correct.

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