### What is rate of return on this investment

Assignment Help Financial Management
##### Reference no: EM131510773

Your insurance agent is trying to sell you an annuity that costs \$230,000 today. By buying this annuity, your agent promises that you will receive payments of \$1,225 a month for the next 30 years. What is the rate of return on this investment?

A. 3.75 percent

B. 4.47 percent

C. 4.93 percent

D. 5.45 percent

E. 5.67 percent

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