C. D. Rom has just given an insurance company $39,500. In return, he will receive an annuity of $5,200 for 20 years. At what rate of return must the insurance company invest this $39,500 in order to make the annual payments? Use Appendix D for an approximate answer, but calculate your final answer using the financial calculator method. Note: Do not round intermediate calculations. Round your final answer to 2 decimal places. Rate of return %

C. D. Rom has just given an insurance company $39,500. In return, he will receive an annuity of $5,200 for 20 years. At what rate of return must the insurance company invest this $39,500 in order to make the annual payments? Use Appendix D for an approximate answer, but calculate your final answer using the financial calculator method. Note: Do not round intermediate calculations. Round your final answer to 2 decimal places. Rate of return %

Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)

8th Edition

ISBN:9781285065137

Author:Eugene F. Brigham, Joel F. Houston

Publisher:Eugene F. Brigham, Joel F. Houston

Chapter5: Time Value Of Money

Section: Chapter Questions

Problem 41SP

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