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 $30,439.70 that will pay them $3,500 per year for 15 years. They don't have the slightest idea what return they would be making on their investment of $30,439.70. What rate of return would they be earning?

On December 31, Beth Klemkosky bought a yacht for $50,000. She paid $10,000 down and agreed to pay the balance in 10 equal annual installments that include both the principal and 7 percent interest on the declining balance. How big will the annual paymentsbe? If Beth agrees to pay the loan plus 7 percent compound interest on the unpaid balance over the next 10 years in 10 equal end-of-year payments, what will those equal payments be?