Personal Finance Problem Choosing the best annuity Raina Herzig wishes to choose the best of four annuities available to her. In each case, in exchange for paying a lump sum today, she will receive equal, end-of-year cash payments for a specified number of years. She con- siders the annuities equally risky and is not concerned about their differing lives. Her decision will be based solely on the rate of return she will earn on each The following table shows the key terms of the four annuities. annuity. Life (years) Annuity B D Cost of annuity today $30,000 25,000 40,000 35,000 Annual cash flow $3,100 3,900 4,200 4,000 20 10 15 12 a. Calculate, to the nearest 1%, the rate of return on each of the four annuities Raina is considering b. Given Raina's stated decision criterion, which annuity would you recommend