Find the unknown interest rate i

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Reference no: EM131910198

For 100,000, Smith purchases a 20-payment annuity-immediate with annual payments. For each of the following cases find the unknown interest rate i.

(a) The first payment is 7000 and each subsequent payment is 750 more than the previous one.

(b) The first payment is 7000 and each subsequent payment is 10% larger than the previous one.

Reference no: EM131910198

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