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General Electric has an unfunded pension liability of $300 million that must be paid in 15 years. The CFO deposits $10 million in account today
General Electric has an unfunded pension liability of $300 million that must be paid in 15 years. The CFO deposits $10 million in account today to help meet this goal, and will also deposit $8 million at the end of the next 15 years, to meet this liability. What annual rate of interest must the account earn to meet the liability?
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