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2. The Insolvent Insurance Co. will pay you $2,500 a year for 10 years in exchange for $30,000 today. What interest rate will you earn
2. The Insolvent Insurance Co. will pay you $2,500 a year for 10 years in exchange for $30,000 today. What interest rate will you earn on this annuity? A. -3.18 percent B. 3.18 percent C. 5.50 percent D. 5.55 percent E. 5.60 percent answer is B but how?
2. The Insolvent Insurance Co. will pay you $2,500 a year for 10 years in exchange for $30,000 today. What interest rate will you earn on this annuity?
A. -3.18 percent
B. 3.18 percent
C. 5.50 percent D. 5.55 percent E. 5.60 percent
answer is B but how?
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