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5-7 RETURN EARNED ON ANNUITY Lin Shan is about to retire and is exploring the possibility of investing a lump sum in an annuity so

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5-7 RETURN EARNED ON ANNUITY Lin Shan is about to retire and is exploring the possibility of investing a lump sum in an annuity so that she gets 50% of her last drawn salary at the end of every month for 15 years. She esti- mates her last-drawn salary to be 160,000. The quotation she obtained from Ping Tan Insurance requires her to invest a lump sum of V1 million. Calculate the return that Lin Shan is earning on her annuity

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