document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=949627>Question 949627</A>: <I><SPAN STYLE=\"word-break: break-all;\"> Kindly could anyone help to solve this problem please?\r<BR>\n" );
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document.write( "Mike loans Anita 8,200. Anita pays Mike 3,500 at the end of the first year and each year thereafter for a total of 3 payments. Mike reinvests the money in his bank account getting 5.0% compound annual interest. What yield did Mike earn over the 3 years (hint-what annual interest rate makes the time value of the cash flows equal)? </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #579800 by </B><A HREF=/tutors/aboutme.mpl?userid=Theo><B>Theo(13342)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=Theo><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/cgi-bin/show-face.mpl?user=Theo><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=579800\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> his cash flow and internal rate of return are shown below:\r<BR>\n" );
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document.write( "the solution is that he has earned an internal rate of return of 16.5%.\r<BR>\n" );
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document.write( "the cash flows for each year include the interest earned on the payments plus the interest that was re-invested.\r<BR>\n" );
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