"You invest $78 immediately for 4 years. The inflation rate is 4.6%. At the end of...
"You invest $78 immediately for 4 years. The inflation rate is 4.6%. At the end of 4 years, you receive $244.31 in actual (year-4) dollars. What is the interest-free internal rate of return? Enter your answer as a percentage rounded to the nearest tenth of a percent."
Homework Answers
internal rate of return = r (inflation free)
t = 4 years and FV = $ 244.31
78 x (1 + r)4x (1 + 4.6%)4 = 244.31
r = 27.18%
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