What annual nominal compounding rate has this annuity


Use graphical approximation techniques to answer the question. When would an ordinary annuity consisting of quarterly payments of $652.98 at 4% compounded quarterly be worth more than a principal of $7500 invested at 7% simple interest? The annuity would be worth more than the principal in approximately ___ years? (Round to once decimal place as needed)

Use graphical approximation techniques or an equation solver to approximate the desired interest rate. A person makes annual payments of $1000 into an ordinary annuity. At the end of 5 years, the amount in the annuity is $5639.34. What annual nominal compounding rate has this annuity earned The interest rate is ___ ? (Round to 2 decimal places.)

Request for Solution File

Ask an Expert for Answer!!
Financial Management: What annual nominal compounding rate has this annuity
Reference No:- TGS02790813

Expected delivery within 24 Hours