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jed wants to borrow 1000 from me. he is proposing to repay me with 3 annual...

jed wants to borrow 1000 from me. he is proposing to repay me with 3 annual payments of 296.20 starting immediately. in addition, he will make a final lump sum payment of 180 three years from today. what rate of return am I earning on the loan ? percentage rounded to two decimal places

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Answer #1
year cash flow
0                   (703.80) (-1000+296.2)
1                     296.20
2                     296.20
3                     180.00
IRR =IRR (B2:B5) 5.20%
what rate of return am I earning on the loan 5.20%
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