Answer:
A) 19.62%
Explanation:
We have to use the RATE formula which is shown in the attachment below:
The NPER represents the time period.
Provided that,
Present value = $26,000
Assuming figure - Future value or Face value = $0
PMT = $400
NPER = 12 months
The formula is shown below:
= -Rate(NPER;PMT;-PV;FV;type)
The present value come in negative
So, the annual return on the investment is 19.62%