Respuesta :
Answer:
Rate of return is the rate of interest paid on unpaid balance of money which is borrowed or the interest rate earned on the unrecoverable balance of the money lent or investment.
Annual Payment [tex]A = F[\frac{i}{(1+i)^{2} -1}][/tex] where F is accumulated sum of amount, n is number of years and i is annual rate of interest. The standard notation equation is A = F(A/ F, i, n)
Annual Payment [tex]A = P[\frac{i(1+i)^{2} }{(1+i)^{2} -1}][/tex] where P is present value, n is number of years and i is annual rate of interest. The standard notation equation is A = P(A/P,i.n)
IRR (first_celtlast_cell) represent the internal rate of return for series of cash flow.
The scholarship starts as soon as endowment obligation are fulfilled so here P is 100000 - 10000 = 90000, A is 10000, n is infinite. So, the equation is
0 = -90000 + 10000 / [tex]i^{*}[/tex]
[tex]i^{*}[/tex] = 0.1111
OR
[tex]i^{*}[/tex] = 11.11%
