Nicki$$ Johnson, a teacher retiring$$ soon, receives a call from an insurance agent. The agent talks to Nikki about several annuities that she could buy that would guarantee her an annual$($guaranteed$)$ income. The annuities are as follows in the popup$$ window: LOADING....

If Nicki could earn $9$ percent on her money by placing it in a savings$$ account, should she place it instead in any of the$$ annuities? Which$$ ones, if$$ any? Why?

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Part $1$

a$.$ What rate of return could Nicki earn on her money if she place it in annuity A with $$$$6$ comma $000$ payment per year and $25$ years$$ duration?

$7\mathrm{.}98$

$\%($Round to two decimal$$ places.$)$

If Nicki could earn $9$ percent on her money by placing it in a savings$$ account, should she place it instead in annuity$$ A$?($Select the best choice$$ below.$)$

A$.$

Yes. Nicki should place her money in annuity A because the expected rate of return on the annuity is greater than the one on the savings account.

B$.$

No$.$ Nicki should not place her money in annuity A because the expected rate of return on the annuity is smaller than the one on the savings account.

b$.$ What rate of return could Nicki earn on her money if she placed it in annuity annuity B with $$$$7$ comma $000$ payment per year and $18$ years$$ duration?

$8\mathrm{.}54$

$\%($Round to two decimal$$ places.$)$

If Nicki could earn $9$ percent on her money by placing it in a savings$$ account, should she place it instead in annuity$$ B$?($Select the best choice$$ below.$)$

A$.$

No$.$ Nicki should not place her money in annuity B because the expected rate of return on the annuity is smaller than the one on the savings account.

B$.$

Yes. Nicki should place her money in annuity B because the expected rate of return on the annuity is greater than the one on the savings account.

c$.$ What rate of return could Nicki earn on her money if she placed it in annuity annuity C with $$$$7$ comma $500$ payment per year and $10$ years$$ duration?

$8\mathrm{.}12$

$\%($Round to two decimal$$ places.$)$

If Nicki could earn $9$ percent on her money by placing it in a savings$$ account, should she place it instead in annuity$$ C$?($Select the best choice$$ below.$)$

A$.$

No$.$ Nicki should not place her money in annuity C because the expected rate of return on the annuity is smaller than the one on the savings account.

B$.$

Yes. Nicki should place her money in annuity C because the expected rate of return on the annuity is greater than the one on the savings account.

What rate of return could Nicki earn on her money if she place it in annuity A with $@CNUM$\{6000\}$ payment per year and $25$ years duration?$($Round to two decimal places.$)9($Select the best choice below.$))$@CNUM$\{7000\}18$What rate of return could Nicki earn on her money if she placed it in annuity annuity B with $@CNUM$\{7000\}$ payment per year and $18$ years duration?$($Round to two decimal places.$)9($Select the best choice below.$))$@CNUM$\{7500\}10$What rate of return could Nicki earn on her money if she placed it in annuity annuity C with $@CNUM$\{7500\}$ payment per year and $10$ years duration?$($Round to two decimal places.$)9($Select the best choice below.$))$