Order to make the annual payments

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Yield with interpolation

C. D. Rom has just given an insurance company $37,000. In return, he will receive an annuity of $3,900 for 20 years.

At what rate of return must the insurance company invest this $37,000 in order to make the annual payments? Interpolate. Use Appendix D. (Round "PV Factor" to 3 decimal places and final answer to 2 decimal places. Omit the "%" sign in your response.)

Reference no: EM131886557

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