9. Implied interest rate and period

Consider the case of the following annuities, and the need to compute either their expected rate of return or duration.

Raul inherited an annuity worth $4,629.10 from his uncle. The annuity will pay him seven equal payments of $800 at the end of each year. The annuity fund is offering a return of _________? .

Rauls friend, Sadler, has hired a financial planner for advice on retirement. Considering Sadlers current expenses and expected future lifestyle changes, the financial planner has stated that once Sadler crosses a threshold of $1,239,909 in savings, he will have enough money for retirement. Sadler has nothing saved for his retirement yet, so he plans to start depositing $70,000 in a retirement fund at a fixed rate of 5.00% at the end of each year. It will take ____________ ? for Sadler to reach his retirement goal.