An investor was afraid that he would become like King Lear in his retirement and beg hospitality from his children, so he purchased grain "tithes," or shares in farm output, for 460 pounds. The tithes paid him 61 pounds per year for 32 years. What interest rate did the he receive on this investment?

SWFT Individual Income Taxes
43rd Edition
ISBN:9780357391365
Author:YOUNG
Publisher:YOUNG
Chapter5: Gross Income: Exclusions
Section: Chapter Questions
Problem 19DQ
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An investor was afraid that he would become like King Lear in his retirement and beg hospitality from his children, so he purchased grain "tithes," or shares in farm output, for 460 pounds. The tithes paid him 61 pounds per year for 32 years. What interest rate did the he receive on this investment?

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