At the time they retire, a couple has $200,000 invested in an annuity. The couple can take

Question:

At the time they retire, a couple has $200,000 invested in an annuity. The couple can take the entire amount in a single payment, or receive monthly payments of $2,000 for 15 years. If the couple elects to receive the monthly payments, what annual nominal rate will the couple earn on the money invested in the annuity?
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...