Find percentage rate of return on the loan

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A person you trust foresees the need for a loan and suggests that you loan them $2000 at the end of year 1, $1000 at the end of year 2, nothing in year 3, and then they will pay you $1000 in year 4, $2000 in year 5, and $3000 in year 6. They note that you will pay out a total of $3000 to them, and then they will pay you back $6000 to you, allowing you to double your money.

What is your percentage rate of return (IRR) on the loan?

Reference no: EM132667036

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