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Erik purchases a ten-year annuity-immediate with monthly payments. The first payment is $300 and payments increase by $5 each month. The payments are deposited into
Erik purchases a ten-year annuity-immediate with monthly payments. The first payment is $300 and payments increase by $5 each month. The payments are deposited into an account earning interest at a nominal rate of 6% per annum convertible monthly. Suppose Eric buys this annuity at a price of $54,511.02. Find his annual yield rate over the ten years.
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