Solution: What is the annual rate of return on investment for the project?

An investment of P350,000 is made today to be followed by payments of P200,000 each year for 3 years. What is the annual rate of return on investment for the project?

What is the annual rate of return on investment for the project?

Problem Statement: EE Board October 1997

An investment of P350,000 is made today to be followed by payments of P200,000 each year for 3 years. What is the annual rate of return on investment for the project?

  • A. 32.7%
  • B. 33.8%
  • C. 33.2%
  • D. 33.6%

Problem Answer:

The annual rate of return on investment for the project is 32.7%.

Solution:

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