* P5-55 Choosing the best annuity Raina Herzig wishes to choose the best of four immediate-re- tirement annuities available to her. In each case, in exchange for paying a single premium today, she will receive equal, annual, end-of-year cash benefits for a specified number of years. She considers the annuities to be equally risky and is not concerned about their dif- fering lives. Her decision will be based solely on the rate of return she will earn on each annuity. The key terms of the four annuities are shown in the following table. Annuity EO PA $3,100 Premium paid today Annual benefit Life (years) $30,000 25,000 3,900 40,000 4,200 4,000 O . CHAPTER 5 Time Value of Money a. Calculate to the nearest 1% the rate of return on each of the four annuities Raina is considering