1. Your folks just called and would like some advice from you. An insurance agent just called them and offered them the opportunity to purchase an annuity for $17,081.85 that will pay them $2,500 per year for 15 years. They don't have the slightest idea what return they would be making on their investment of $17,081.85. What rate of return would they be earning?

The annual rate of return your folks would be earning on their investment is ?%

2. You've been offered a loan of $10,000, which you will have to repay in 10 equal annual payments of $2,000, with the first payment due one year from now. What interest rate would you pay on that loan?

The interest rate you would pay on the loan is ?%