The rate of return earned on an investment of $50,000 today that guarantees an annuity of $10,489 for six years in approximately:
A) 5 percent
B) 7 percent
C) 30 percent
D) 10 percent
E) 12 percent

Name: The rate of return earned on an investment of $50,000 today that guarantees an annuity of $10,489 for six years in approximately: A) 5 percent B) 7 percent C) 30 percent D) 10 percent E) 12 percent
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Using a financial calculator:
N = 6, PV = -50,000, PMT = 10,489, FV = 0, cpt I/Y = 7%

The Rate of Return Earned on an Investment of $50,000