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an annuity has an initial balance of $5000. annual withdrawals are made in the amount of $800 for 9 years, at which point the account balance is zero. what annual rate of interest, compounded annually,
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an annuity has an initial balance of $5000. annual withdrawals are made in the amount of $800 for 9 years, at which point the account balance is zero. what annual rate of interest, compounded annually, was earned over the duration of this annuity?

User Hruske
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1 Answer

7 votes
Belongs in middle school

800*9 = 5000*(?)^9
1.44 = ?^9
root to the 9
? = 1.041

7200-5000 = 2200

User Mishax
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