(Annuity interest rate) 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 $6,903.27 that will pay them $1,000 per year for 25 years. They don’t have the slightest idea what return they would be making on their investment of $6,903.27.
What rate of return would they be earning? The annual rate of return your folks would be earning on their investment is _____% (Round to two decimal places)
Please show the formula for the answer.