Professor's Annuity Corp. offers a lifetime annuity to retiring professors. For a lump payment today of $59,470.17, the firm will pay the retiring professor $9,200 per year for 25 years. What is the interest rate on the annuity? (Do not round intermediate calculations. Round your answer to 2 decimal places.) %

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter5: The Time Value Of Money
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Professor's Annuity Corp. offers a lifetime annuity to retiring professors. For a lump payment today of $59,470.17, the firm will pay the
retiring professor $9,200 per year for 25 years.
What is the interest rate on the annuity? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
%
Transcribed Image Text:Professor's Annuity Corp. offers a lifetime annuity to retiring professors. For a lump payment today of $59,470.17, the firm will pay the retiring professor $9,200 per year for 25 years. What is the interest rate on the annuity? (Do not round intermediate calculations. Round your answer to 2 decimal places.) %
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