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Professor's Annuity Corp. offers a lifetime annuity to retiring professors. For a payment of $42,000 at age 70, the firm will pay the retiring professor
Professor's Annuity Corp. offers a lifetime annuity to retiring professors. For a payment of $42,000 at age 70, the firm will pay the retiring professor $4.500 a semi-annual until death. If the professor's remaining life expectancy is 10 years, what is effective annual interest rate on this annuity? Multiple Choice 11.32% 18.14% 17.38% 8.69%
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Contemporary Economics An Applications Approach
Authors: Robert Carbaugh
8th Edition
1138652199, 978-1138652194
