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16. Professors Annuity Corp. offers a lifetime annuity to retiring professors. For a lump payment today of $118,909.22, the firm will pay the retiring professor

16. Professors Annuity Corp. offers a lifetime annuity to retiring professors. For a lump payment today of $118,909.22, the firm will pay the retiring professor $13,100 per year for 25 years.

What is the interest rate on the annuity? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

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