A person invests $2,000 annually in an IRA At the end of 6 years, the amount in the fund is $14,000 What annual nominal compounding rate has this fund earned In Problem, use graphical approximation techniques or an equation solver to approximate the desired interest rate Express each answer as a pe...

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A person invests $2,000 annually in an IRA. At the end of 6 years, the amount in

Question:

A person invests $2,000 annually in an IRA. At the end of 6 years, the amount in the fund is $14,000. What annual nominal rate has this fund earned?
In Problem, use graphical approximation techniques or an equation solver to approximate the desired interest rate. Express each answer as a percentage, correct to two decimal places.
Compounding
Compounding is the process in which an asset's earnings, from either capital gains or interest, are reinvested to generate additional earnings over time. This growth, calculated using exponential functions, occurs because the investment will...