Two independent situations follow. Solve for the appropriate variable.
a. Nar do Co. wants to purchase a piece of heavy equipment in seven years for $ 751,815. The corporation currently has $ 500,000 to invest for this purpose. Determine the rate of return (assuming annual com-pounding) required to accumulate sufficient funds to acquire the equipment at the end of the seven- year period.
b. Apollo Inc. decides to pay a one- time bonus of $ 59,702.50 to its vice president, who is expected to retire within the next few years. Apollo can invest $ 50,000 at 3%, compounded annually. How many years will it take to have the $ 59,702.50 to pay the bonus?