Professors Annuity Corporation offers a lifetime annuity to retiring professors. For a payment of $86,000 at age 65, the firm will pay the retiring professor $750 a month until his death.

a. If the professors remaining life expectancy is 20 years, what is the monthly interest rate on this annuity?

Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.

b. What is the effective annual interest rate?

Note: Do not round intermediate calculations. Round your answer to 2 decimal places.

c. If the monthly interest rate is 0.50%, what monthly annuity payment can the firm offer to the retiring professor?

Note: Do not round intermediate calculations. Round your answer to 2 decimal places.

a. Monthly rate on annuity?

b. Effective annual rate?

c. Monthly annuity payment?