Annuity Interest Rate What is the interest rate of a 6-year,annual $3,000 annuity with present value of $14,000?
A)5.64 percent
B)7.69 percent
C)10.17 percent
D)11.32 percent

Question

Quizplus · Accepted Answer

The interest rate can be calculated using the present value of annuity formula. Solving for the interest rate that equates a $3,000 annual payment for 6 years to a present value of $14,000 results in approximately 7.69 percent.

Annuity Interest Rate What Is the Interest Rate of a 6-Year,annual