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You can purchase an annuity that pays $1000 per year for 5 years. The first payment will be received exactly one year from today. If

You can purchase an annuity that pays $1000 per year for 5 years. The first payment will be received exactly one year from today. If the interest rate is 8%, compounded quarterly, what is the most you would be willing to pay for the annuity (rounded to the next $)?


A quarterly compounded investment of $10,000 is expected to grow to $20,000 in 7 years. What is the underlying effective annual interest rate?


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