2013年11月13日星期三

Rate of Return Finance Question?

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I need some help with steps , please say steps with TIBAII calculator is possible.




Your insurance agent us trying to sell you annuity that costs $200,000 today. By buying this annuity, your agent promises you will receive payments of $1,225 a month for the next 30 years. What is rate of return on investment?


Answer was 6.20% but I don't get why/how.


Thanks in advance.

Rate of Return Finance Question?

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