Solution-What interest rate was used to determine the amount

What interest rate was used to determine the amount

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1. In a book named Treasure, the reader has to figure out where a 2.2 pound, 24kt gold horse has been buried. If the horse is found, a prize of $25,000 a year for 20 years is provided. The actual cost of the publisher to purchase an annuity to pay for the prize is $210,000. What interest rate (to the nearest percent) was used to determine the amount of the annuity? (Assume end-of-year payments)

Reference no: EM131105543

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What interest rate was used to determine the amount

Reference no: EM131105543

Reference no: EM131105543

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