Janet receives a $ 10,000 life insurance benefit. If she uses the proceeds to buy an n-year annuity immediate, the annual payout will be 1613.36. If a 2n-year annuity due is purchased, the annual payout will be 1507.44. Both calculations are based on an effective annual interest rate of i. Calculate i.
Having trouble with this problem. My prof told me to use annuity immediate for both of the options but I cannot seem to get the correct answer.
My approach is $k_1$ $a_n*i$=$k_2$ $a_2n*i$ and solve for i, where $k_1$=1613.26 and $k_2=1507.44$.