Problem 9-34 Yield with interpolation [LO4]

C. D. Rom has just given an insurance company $37,000. In return, he will receive an annuity of $3,900 for 20 years.

At what rate of return must the insurance company invest this $37,000 in order to make the annual payments? Interpolate. Use Appendix D. (Round "PV Factor" to 3 decimal places and final answer to 2 decimal places. Omit the "%" sign in your response.)