Question: For $ 1 0 , 0 0 0 , Kelly purchases an annuity - immediate that pays $ 4 0 0 quarterly for the next

For $10,000, Kelly purchases an annuity-immediate that pays $400
quarterly for the next 10 years. Calculate the annual effective interest rate earned by
Kellys investment.
[Note that to solve this problem, youll first need to compute a
quarterly interest rate j which is actually i(4)/4. Once you obtain this, you can convert it to the annual effective rate i.]
No excel please.

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