i just need the answer to these 2 questions: 1. I’m looking to figure out the ra

Question

i just need the answer to these 2 questions:

1. I’m looking to figure out the rate of return. Here is the criteria. Original investment of 250,000. The investment gives 3,000 worth of income per month for 4 months then there is a balloon payment of $262,261. What is the annualized return? Please provide the method on how you calculated that.

2. I’m looking to figure out the rate of return. Here is the criteria. Original investment of 238,000. The investment gives 3,200 worth of income per month for 12 months then there is a balloon payment of $242,869. What is the annualized return? Please provide the method on how you calculated that.

Explanation / Answer

All Amounts in $ 1. Initial Amount invested 250000 Income for 4 months 12000 Balloon Payment 262261 Total Income 274261 Earnings on Investment 24261 % of Return (Annualised) 9.70% 1. Initial Amount invested 238000 Income for 12 months 45600 Balloon Payment 242869 Total Income 288469 Earnings on Investment 50469 % of Return (Annualised) 21.21%

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