Water damage from a major flood in a Midwestern city resulted in damages estimated at $100 million. As a result of the claimant payouts, insurance companies raised homeowners' insurance rates by an average of $60 per year for each of the 150,000 households in the affected city. If a 20-year study period is considered, what was the rate of return on the $100 million paid by the insurance companies? (draw the cash flow diagram)
Please make sure that the cash flow is correct .