Melissa Adams has just given an insurance company $68,525. In return, she will receive an...
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Accounting
Melissa Adams has just given an insurance company $68,525. In return, she will receive an annuity of $8,627 for 12 years.
a. At what rate of return must the insurance company invest this $68,525 to make the annual payments? (Use a Financial calculator to arrive at the answers. Round the final answer to 3 decimal places.)
Rate of return %
b. What rate of return is required if the annuity is payable at the beginning of each year? (Use a Financial calculator to arrive at the answers. Round the final answer to 2 decimal places.)
Rate of return %
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