Question: Your folks just called and would like some advice from you. An insurance agent just called them and offered them the opportunity to purchase an

Your folks just called and would like some advice from you. An insurance agent just called them and offered them the opportunity to purchase an annuity for $21,342.15 that will pay them $2,500 per year for 20 years. Theydon't have the slightest idea what return they would be making on their investment of $21,342.15. What rate of return would they beearning in percent?

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