Problem 9-34 (Algo) Yield on Investment [LO9-4] C. D. Rom has just given an insurance company $46,500. In return, he will receive an annuity of $6,600 for 20 years. At what rate of return must the insurance company invest this $46,500 in order to make the annual payments? Use Appendix D for an approximate answer, but calculate your final answer using the financial calculator method. Note: Do not round Intermediate calculations. Round your final answer to 2 decimal places. Rate of return 6.35 %
Problem 9-34 (Algo) Yield on Investment [LO9-4] C. D. Rom has just given an insurance company $46,500. In return, he will receive an annuity of $6,600 for 20 years. At what rate of return must the insurance company invest this $46,500 in order to make the annual payments? Use Appendix D for an approximate answer, but calculate your final answer using the financial calculator method. Note: Do not round Intermediate calculations. Round your final answer to 2 decimal places. Rate of return 6.35 %
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
![Problem 9-34 (Algo) Yield on Investment [LO9-4]
C. D. Rom has just given an insurance company $46,500. In return, he will receive an annuity of $6,600 for 20 years.
At what rate of return must the insurance company invest this $46,500 in order to make the annual payments? Use Appendix D for an
approximate answer, but calculate your final answer using the financial calculator method.
Note: Do not round Intermediate calculations. Round your final answer to 2 decimal places.
Rate of return
6.35 %](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe23feda9-6680-4714-bad5-eb3bad054451%2Fcdd4e316-7f9e-4b53-bbd1-c0d5939c5c40%2Fpcys0rg_processed.png&w=3840&q=75)
Transcribed Image Text:Problem 9-34 (Algo) Yield on Investment [LO9-4]
C. D. Rom has just given an insurance company $46,500. In return, he will receive an annuity of $6,600 for 20 years.
At what rate of return must the insurance company invest this $46,500 in order to make the annual payments? Use Appendix D for an
approximate answer, but calculate your final answer using the financial calculator method.
Note: Do not round Intermediate calculations. Round your final answer to 2 decimal places.
Rate of return
6.35 %
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 2 images
Recommended textbooks for you
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education