Are annuities good investments? To answer this question, corisider the siluation of John. He is 50 years old and can purchase a lifetime annuity for 100,000. The annuity pays Jon S6,000 per year for the restos life I John lives to be 76, what rate of relurn will he earn on this investment? What it John only lives to be TD2 lf Jonn lives t ege 76, his IRR is 1 % per year (Round to two decimal places.)