Ch 05: Assignment - Time Value of Money Back to Assignment Attempts: 1 0 Average: 0.5/2 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. Michael inherited an annuity worth $7,105.97 from his uncle. The annuity will pay him six equal payments of $1,400 at the end of each year. The annuity fund is offering a return of Michael's friend, Taylor, wants to go to business school. While his father will share some of the expenses, Taylor still needs to put in the rest on his own. But Taylor has no money saved for it yet. According to his calculations, it will cost him $49,487 to complete the business program, including tuition, cost of living, and other expenses. He has decided to deposit $5,000 at the end of every year in a mutual fund, from which he expects to earn a fixed 6% rate of return. It will take approximately for Taylor to save enough money to go to business school. Grade It Now Save & Continue Continue without saving