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Your grandmother just turned 71. She used her RRSP to purchase an annuity. The annuity cost $1,725,000. The annuity will make annual payments of $224,250

Your grandmother just turned 71. She used her RRSP to purchase an annuity. The annuity cost $1,725,000. The annuity will make annual payments of $224,250 at the end of each year for the next 20 years. What is the effective annual rate of return that your grandmother is earning?

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