Use graphical approximation techniques to answer the question. When would an ordinary annuity consisting of quarterly payments of $587 10 at 5% compounded quarterly be worth more than a principal of $6500 invested at 4% simple interest? The annuity would be worth more than the principal in approximately 2.9 years. (Round to one decimal place as needed)

Use graphical approximation techniques to answer the question. When would an ordinary annuity consisting of quarterly payments of $587 10 at 5% compounded quarterly be worth more than a principal of $6500 invested at 4% simple interest? The annuity would be worth more than the principal in approximately 2.9 years. (Round to one decimal place as needed)

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter4: Time Value Of Money

Section4.17: Amortized Loans

Problem 1ST

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