Return of capital and how many dollars are profit

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A corporation is considering the purchase of an interest in a syndication at a price of $75,000. In return, the syndication promises to pay $1,000 at the end of each month for the next 25 years (300 months). If purchased, what is the expected internal rate of return, compounded monthly? For the first three months of payment, how many dollars of the monthly payment are a return of capital and how many dollars are profit to the corporation?

Reference no: EM132460241

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