Homework answers / question archive / Your folks just called and would like some advice from you

Your folks just called and would like some advice from you

Finance

Share With

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 $19,206.30 that will pay them $3500 per year for 10 years. They don't have the slightest idea what return they would be making on their investment of $19,206.30. What rate of return would they be earning?