Question: Problem 9-34 Yield with interpolation [LO4] C. D. Rom has just given an insurance company $35,000. In return, he will receive an annuity of $3,700

Problem 9-34 Yield with interpolation [LO4]

C. D. Rom has just given an insurance company $35,000. In return, he will receive an annuity of $3,700 for 20 years.

At what rate of return must the insurance company invest this $35,000 in order to make the annual payments? Use Appendix D for an approximate answer, but calculate your final answer using the financial calculator method. (Do not round intermediate calculations. Round your final answer to 2 decimal places.)

What is the rate of return? _______________

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