Through your career, you have saved-up $850,000. You are now ready to retire. You discuss your plans with your banks financial adviser. He informs you that you can establish an annuity that will pay $51,000 per year for 25 years. What is the implied rate the bank is offering?

 

Answer rating: 100% (QA)

To determine the implied interest rate offered by the bank for the annuity we can use the p... View the full answer