Professors Annuity Corp. offers a lifetime annuity to retiring professors. For a payment of $21,000...
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Professors Annuity Corp. offers a lifetime annuity to retiring professors. For a payment of $21,000 at age 70, the firm will pay the retiring professor $2,250 a semi-annual until death. If the professors remaining life expectancy is 10 years, what is effective annual interest rate on this annuity?
1.28%
11.32%
8.69%
17.38%
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