a.Calculate the compound annual growth rate between the first and last payment in the stream.

b. Now assume the cash flows are not cash flows, but actual annual end-of-year account balances in a savings account paying annual interest. If the year 1 value represent initial deposit in a savings account paying annual interest, what is the annual rate of interest earned on the account?

c. Compare and discuss the growth rate and interest rate found in parts a and b.

Chart flows table

Year: Cash flows:

1 $700

2$750

3$820

4$850

5$950

6$1,000

7 $1,100

(For A, and B round 2 decimal places)