Present value of annuities is also used to calculate the rate of return expected from an investment and, thus, has several practical applications. Jorge needed money for some unexpected expenses, so he borrowed $3,111.72 from a friend and agreed to repay the loan in five equal installments of $800 at the end of each year. What is the implied interest rate in this agreement? Jorge's friend Chris wants to go to business school. While his father will share some of the expenses, Chris still needs to put in the rest on his own. But Chris has no money saved for it yet. According to his calculations, it will cost him $22,293 to complete the business program, including tuition, cost of living, and other expenses. He has decided to deposit $3,800 at the end of every year in a mutual fund, from which he expects to earn a fixed 8% rate of return. Approximately how long will it take for Chris to save enough money to go to business school? 6.75 years 4.25years 5.00 years 6.25years