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 $21,074.25 that will pay them $3,000 per year for 20 years (payments received at the end of each year. They don't have the slightest idea what return they would be making on their investment of $21,074.25. They would be earning an annual rate of return of 13% true or false? True False