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Professor’s Annuity Corp. offers a lifetime annuity to retiring professors. For a payment of $84,000 at...

Professor’s Annuity Corp. offers a lifetime annuity to retiring professors. For a payment of $84,000 at age 80, the firm will pay the retiring professor $9,000 a semi-annual until death. If the professor’s remaining life expectancy is 10 years, what is effective annual interest rate on this annuity?

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Answer: 18.14%

jeff jeffy answered 2 years ago
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