1 2 3 4 4 ch Your financial planner offers you two different investment plans. Plan X is an annuity of $40,000 per year for 25 years. Plan Y is an annuity for 15 years and an annual payment of $47,000. Both plans will make their first payment one year from today. Find the discount rate at which you would be indifferent between these two plans; that is, the discount rate at which the plans have approximately the same present value. While there are other ways to approach this problem, the most obvious is by trial and error; calculate both present values, and adjust the discount rate until the PVs are equal! Once you find the discount rate to the nearest 0.01%, you are close enough. ON 7 8 9 10 11 12 Plan X 40,000 25 Annual Payment Term (years) Discount rate Plan Y 47,000 15 13 14 15 16 Present Value Difference: 17 10