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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Related Book For
Intermediate Accounting
ISBN: 978-0077400163
6th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson
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