I don\'t think I\'m doing this right because I have entered it into the finance

Question

I don't think I'm doing this right because I have entered it into the finance app in IRR on my calculator and it gives me a negative percentage for the first ten years. Obviously I'm going to have to do it by hand instead. For that reason, please show all your work because I'm I don't know how solve this problem.

An insurance company has made you the following retirement offer. If you pay them $100,000 now, you will receive payments of $8,000 a year for 10 years. After this they will pay you $9,000 a year in perpetuity. What interest rate are you making on your retirement money?

Thanks!

Explanation / Answer

Ans.

8% the first 10 yrs then 9% after.
Duh that is what 8k of 100k is

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