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Through your career, you have saved-up $850,000. You are now ready to retire. You discuss your plans with your banks financial adviser. He informs you

Through your career, you have saved-up $850,000. You are now ready to retire. You discuss your plans with your banks financial adviser. He informs you that you can establish an annuity that will pay $51,000 per year for 25 years. What is the implied rate the bank is offering?


 

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