Present value of annuities is also used to calculate the rate of return expected from an investment and, thus, has several practical applications. Aadi inherited an annuity worth $4,169.87 from his uncle. The annuity will pay him five equal payments of $1,100 at the end of each year. What rate of return is the annuity fund offering? 11.80% 13.50% 10.00% 8.70% Aadi's friend Aaron wants to go to business school. While his father will share some of the expenses, Aaron still needs to put in the rest on his own. But Aaron has no money saved for it yet. According to his calculations, it will cost him $16,232 to complete the business program, including tuition, cost of living, and other expenses. He has decided to deposit $5,000 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 Aaron to save enough money to go to business school? 3.75 years 4.05 years 3.00 years 2.55 years