You just paid $353,000 for an annuity that will pay you and your heirs $11,200 a year forever. What rate of return are you earning on this policy?

Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN:9781285595047
Author:Weil
Publisher:Weil
ChapterA: Appendix - Time Value Of Cash Flows: Compound Interest Concepts And Applications
Section: Chapter Questions
Problem 11E
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You just paid $353,000 for an annuity
that will pay you and your heirs $11,200
a year forever.
What rate of return are you earning on
this policy?
Transcribed Image Text:You just paid $353,000 for an annuity that will pay you and your heirs $11,200 a year forever. What rate of return are you earning on this policy?
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