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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?

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