7.(Annuity interestrate)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 $16,179.90 that will pay them $2,000 per year for 20 years. Theydon't have the slightest idea what return they would be making on their investment of $16,179.90. What rate of return would they beearning?

*The annual rate of return your folks would be earning on their investment is ? (Round to two decimal places)