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Rust Bucket Motor Credit Corporation (RBMCC), a subsidiary of Rust Bucket Motor, offered some securities for...

Rust Bucket Motor Credit Corporation (RBMCC), a subsidiary of Rust Bucket Motor, offered some securities for sale to the public on March 28, 2010. Under the terms of the deal, RBMCC promised to repay the owner of one of these securities $83223 on March 28, 2044, but investors would receive nothing until then. Investors paid RBMCC $21109 for each of these securities; so they gave up $21109 on March 28, 2010, for the promise of a $83223 payment in 2044.

Suppose that, on March 28, 2022, this security’s price is $40224. If an investor had purchased the security at market on March 28, 2022, and held it until it matured, what annual rate of return would she have earned (round 2 decimal places)

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SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

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