Whats the interest rate of a 7-year, annual $4,000 annuity with present value of $20,000?

Question:

What’s the interest rate of a 7-year, annual $4,000 annuity with present value of $20,000?   Annuity
An annuity is a series of equal payment made at equal intervals during a period of time. In other words annuity is a contract between insurer and insurance company in which insurer make a lump-sum payment or a series of payment and, in return,...
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Finance Applications and Theory

ISBN: 978-0077861681

3rd edition

Authors: Marcia Cornett, Troy Adair

Question Posted: