An insurance company is offering monthly payments of $$250$ for the next twenty years in exchange for a one$-$time payment of $$40,000$ today. What is the rate of return on this offer?

$3\mathrm{.}63\%$

Correct Answer

$4\mathrm{.}36\%$

$5\mathrm{.}21\%$

$6\mathrm{.}39\%$

Incorrect Response

$7\mathrm{.}50\%$