An insurance policy provides a benefit of $21,500 twenty two years from now. Alternatively, the policy pays $590.00 at the beginning of each year for twenty two years. What is the effective annual rate of interest paid? The effective annual rate of interest is %. (Round to two decimal places as needed.)
An insurance policy provides a benefit of $21,500 twenty two years from now. Alternatively, the policy pays $590.00 at the beginning of each year for twenty two years. What is the effective annual rate of interest paid? The effective annual rate of interest is %. (Round to two decimal places as needed.)
Chapter19: Lease And Intermediate-term Financing
Section: Chapter Questions
Problem 18P
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Transcribed Image Text:An insurance policy provides a benefit of $21,500 twenty two years from now. Alternatively, the policy pays $590.00 at the beginning of each year for twenty two
years. What is the effective annual rate of interest paid?
The effective annual rate of interest is %.
(Round to two decimal places as needed.)
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