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What rate of return would be earning

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Reference no: EM132485520

(Annuity interest rate)  

Question 1: Your folks just called and would like some advice from you. An insurance agent just called them and offered them the opportunity to purchase an annuity for $28,540.79 that will pay them $3,500 per year for 20 years. They don't have the slightest idea what return they would be making on their investment of $28,540.79.

Question 1: What rate of return would they be earning?

Reference no: EM132485520

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