Professor’s Annuity Corp. offers a lifetime annuity to retiring professors. For a payment of $70,000 at...

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Professor’s Annuity Corp. offers a lifetime annuity to retiringprofessors. For a payment of $70,000 at age 65, the firm will paythe retiring professor $350 a month until death.
a.
If the professor’s remaining life expectancy is 20 years, whatis the monthly interest rate on this annuity? What is the effectiveannual rate? (Do not round intermediate calculations. Enteryour answer as a percent rounded to 2 decimal places.)
  Monthly rate on annuity %
b.
What is the effective annual interest rate? (Use themonthly rate computed in part (a) rounded to 2 decimal places whenexpressed as a percent. Enter your answer as a percent rounded to 2decimal places.)
  Effective annual rate %
c.
If the monthly interest rate is 1.00%, what monthly annuitypayment can the firm offer to the retiring professor? (Donot round intermediate calculations. Round your answer to 2 decimalplaces.)
  Monthly annuity payment $

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Professor’s Annuity Corp. offers a lifetime annuity to retiringprofessors. For a payment of $70,000 at age 65, the firm will paythe retiring professor $350 a month until death.a.If the professor’s remaining life expectancy is 20 years, whatis the monthly interest rate on this annuity? What is the effectiveannual rate? (Do not round intermediate calculations. Enteryour answer as a percent rounded to 2 decimal places.) Monthly rate on annuity%b.What is the effective annual interest rate? (Use themonthly rate computed in part (a) rounded to 2 decimal places whenexpressed as a percent. Enter your answer as a percent rounded to 2decimal places.) Effective annual rate%c.If the monthly interest rate is 1.00%, what monthly annuitypayment can the firm offer to the retiring professor? (Donot round intermediate calculations. Round your answer to 2 decimalplaces.) Monthly annuity payment$