Section\ Lucas Dose

,

02/01/24 7:00 PM\ Question 2, Problem 5-22 (similar\ to)\ HW Score:

4%,4

of 100 points\ Part 1 of 6\ Points: 0 of 3\ (Solving for

r

with annuities) Nicki Johnson, a sophomore mechanical engineering student, receives a call from an insurance agent, who believes that Nicki is an older woman ready to retire from teaching. He talks to her about several annuities that she could buy that would guarantee her an annual fixed income. The annuities are as follows in the popup window: .\ If Nicki could earn 12 percent on her money by placing it in a savings account, should she place it instead in any of the annuities? Which ones, if any? Why?\ a. What rate of return fould Nicki earn on her money if she place it in annuity A with

$6,500

payment per year and 20 years duration?\

%

(Round to two decimal places.)

Solving for r with annuities) Nicki Johnson, a sophomore mechanical engineering student, receives a call from an insurance agent, wh believes that Nicki is an older woman ready to retire from teaching. He talks to her about several annuities that she could buy that woulc guarantee her an annual fixed income. The annuities are as follows in the popup window: If Nicki could earn 12 percent on her money by placing it in a savings account, should she place it instead in any of the annuities? Which ones, if any? Why? a. What rate of return Yould Nicki earn on her money if she place it in annuity A with $6,500 payment per year and 20 years duration? % (Round to two decimal places.)