Problem $4$

Uncle Larry would like to supplement his pension so he calls his insurance company to find out about his options.

He is told that he could pay $$750$ every quarter for ten years $($making $10\backslash$times $4=40$ payments at the end of each quarter

until his retirement; first payment due one quarter from today$)$ and then he will start receiving quarterly payments of

$$1,000$ forever. He will receive the first $$1,000$ in ten years and one quarter, i$.$e$.$ one quarter after he made his last

payment; after he passes away his heirs $($and their heirs, etc.$)$ will continue to receive the quarterly payments forever.

What is the effective annual rate $($EAR$)$ the bank used to calculate the terms of this deal?