Hi, I am unsure what the formula and process of finding the rate of return for an annuity is. Here is the specific question:
Ed's company is offering him $20,000 to take early retirement. Ed is worrying about payiing $400 at the start of each month for his benefits. Calculate the rate of return compounded quarterly that Ed needs to make on his $20,000 in order to pay the benefits for 5 years.