CFAI Reading 14 Q13Aii Need a little help here. How does the required rate of return turn out to be 4.427%? This should be a simple CF calculation that I imagine would be calculated as follows: PV: -1,235,000 PMT: -26,000 N: 18 FV: 2,000,000/0.6=3,333,333 I ==> 4.32% Am I thinking of this wrong? Thanks in advance.
+26000 not -, and FV needed is 2m
FV is $2M , not $3.33M PMT is input as 26,000, not a negative 26,000