Siegfried Basset is 65 years of age and has a life expectancy of 13 more years. He wishes to invest $33,000 in an annuity that will make a level payment at the end of each year until his death. If the interest rate is 8.0%, what income can Mr. Basset expect to receive each year? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. Annual income

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Effective Interest Rate

The term interest rate can be defined as the amount that is charged by the lender as a percentage on the principal amount. Interest rate which is charged annually is known as annual percentage rate.