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Zax decides to go through with setting up this repair and support service. However, it...

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Finance

Zax decides to go through with setting up this repair and support service. However, it turns out that some of his estimates above were not accurate: The estimated startup cost of $38,000 was correct. The first level quarterly payment Zax receives will be exactly 3 months from the start of this service (and not 6 months as Zax estimated). However, the level quarterly payment Zax would receive is more likely to be 3650.0519871285. These quarterly payments are still expected to only last for 3 years. Again, ignoring the compensation he is paying to Banner, determine the return Zax is earning on this repair and support service, expressed as a nominal annual rate compounding quarterly. Give your answer as a percentage to 4 decimal places.

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