For $1,000, you can purchase a 5-year ordinary annuity, which will pay you a yearly payment of

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For $1,000, you can purchase a 5-year ordinary annuity, which will pay you a yearly payment of $263.80 for 5 years. What is the annual interest rate implicit in this investment to the nearest whole percentage point?

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Intermediate Accounting

ISBN: 978-0077400163

6th edition

Authors: J. David Spiceland, James Sepe, Mark Nelson

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Question Posted: May 23, 2013 04:05 AM

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For $1,000, you can purchase a 5-year ordinary annuity, which will pay you a yearly payment of

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Intermediate Accounting

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