Interest rate for an annuity Personal Finance Problem Anna Waldheim was seriously injured in an industrial accident. She sued the responsible parties and was awarded a judgment of $2,000,000. Today, she and her attorney are attending a settlement conference with the defendants. The defendants have made an initial offer of $156,000 per year for 25 years Anna plans to counteroffer at $255,000 per year for 25 years. Both the offer and the counteroffer have a present value of $2,000,000, the amount of the judgment. Both assume payments at the end of each year. a. What interest rate assumption have the defendants used in their offer (rounded to the nearest whole percent)? b. What interest rate assumption have Anna and her lawyer used in their counteroffer (rounded to the nearest whole percent)? c. Anna is willing to settle for an annuity that carries an interest rate assumption of 9%. What annual payment would be acceptable to her? a. The interest rate assumption the defendants used in their offer, r, is %. (Round to the nearest whole percent.) Growth rates Jamie El-Erian is a savvy investor. On January 1, 2010, she bought shares of stock in Amazon, Chipotle Mexican Grill , and Netflix. The table, shows the price she paid for each stock, the price she received when she eventually sold her shares, and the date on which she sold each stock. Calculate the average annual growth in each company's share price over the time that Jamie held its stock. The average annual growth for Amazon is (%. (Round to two decimal places.) Data table rage Stock Amazon Chipotle Netflix Purchase price $134 88 8 Selling price $754 301 110 Sale date January 1, 2017 January 1, 2013 January 1, 2016