(Solving

for r in an

annuity)

Your folks just called and would like some advice from you. An insurance agent just called them and offered them the opportunity to purchase an annuity for

$17,618.79

that will pay them

$3,000

per year for

15

years, but they don't have the slightest idea what return they will be making on their investment of

$17,618.79.

What rate of return will they be earning?