Answer:
7.50%
Explanation:
The computation of the rate of return is shown below:-
[tex]Present\ value = Payment\times \frac{1 - (1 + r)^{-n}}{i}[/tex]
Where
Number of year = 20
Present value = -$2,550,000
PMT = $250,000
Future value = $0
interest rate = 7.4929%
or
= 7.50%
For more clarification please find the attachment to reach out to the rate of return in which proper formula is to be shown for finding out the rate of return
