What is the internal rate of return compounded annually

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John is considering the purchase of a lot. He can buy the lot today and expects the price to rise to $15,000 at the end of 10 years. He believes that he should earn an investment yield of 8 percent compounded annually on his investment. The asking price for the lot is $7,000. Should he buy it?

What is the internal rate of return compounded annually on the investment if John purchases the property for $7,000 and is able to sell it 10 years later for $15,000?

Reference no: EM131327410

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