Annual nominal compounding rate has annuity earned

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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.)

Reference no: EM131996346

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