hi there.

can anyone give me the formula they used to calculate the required return for q#13 ii

i know i learned this at some point but just can’t locate the formula ro calculate the required return with annual outflows

i.e. 4.427%

thanks in advance!

Q13 of what?

Usually these are done with the TVM function on the calculator. In the case of annual outflows, you’d have a positive PV, a negative PMT and negative FV.

Edit - Oh I see. Reading 8, EOC question 13.

Okay so,

N = 18 , PV = 1,235,000 , PMT = -26,000, FV = -2,000,000

CPT I/Y = 4.4274%