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Save Homework: HW 5(e) Score: 0 of 20 pts P5-56 (similar to) 5 of 5 (0 complete) HW Score: 0%, 0 of 100 pts Question

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Save Homework: HW 5(e) Score: 0 of 20 pts P5-56 (similar to) 5 of 5 (0 complete) HW Score: 0%, 0 of 100 pts Question Help Interest rate for an annuity Personal Finance Problem Anna Waldheim was seriously injured in an industrial accident. She sued the responsible parties and was awarded a judgment of $1,000,000 Today, she and her attorney are attending a settlement conference with the defendants. The defendants have made an initial offer of $72,471 per year for 24 years. Anna plans to counteroffer af $111,300 per year for 24 years. Both the offer and the counteroffor have a present value of $1,000,000, the amount of the judgment. Both assume payments at the end of each year a. What interest rate assumption have the defendants used in the offor (rounded to the nearest whole percent)? b. What interest rate assumption have Anna and her lawyer used in their counteroffer (rounded to the nearest whole percent)? c. Anna is willing to settle for an annuity that comes an interest rate assumption of 7%. What annual payment would be acceptable to her? a. The interest rate assumption the defendants used in the offers % (Round to the marest wholo percent)

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