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At the end of each year for the next 8 years you will receive cash...

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Finance

At the end of each year for the next 8 years you will receive cash flows of $500. The initial investment is $2,500. Which of the following is the correct equation to find the rate of return (r) you are expecting from this investment?

A.

r = ($2,500/$500) [1 1/(1+r)8]

B.

$2,500 = $500 [1/(1+r)8 1] / r

C.

$500 = $2,500 [1 1/(1+r)8] / r

D.

$2,500 = $500 [PVIFA(r%,8)]

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