When annuity would be worth more than the principal


Problem:

Using graphical approximation techniques to answer the question. When would an ordinary annuity consisting of quarterly payments of $646.72 at 8% compounded quarterly be worth more than a principal of $8,900 invested at 4% simple interest?

The annuity would be worth more than the principal in approximately ____ years.

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Finance Basics: When annuity would be worth more than the principal
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