Your insurance agent is trying to sell you an annuity that


Your insurance agent is trying to sell you an annuity that costs $50,000 today. By buying this annuity, your agent promises that you will receive payments of $250 a month for the next 20 years. What is the rate of return on this investment?

A) 2.47 percent

B) 3.75 percent

C) 1.88 percent

D) 3.67 percent

E) 2.45 percent

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Financial Management: Your insurance agent is trying to sell you an annuity that
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