Question

an annuity has an initial balance of $5000. annual withdrawals are made in the amount of $800 for 9 years, at which point the account balance is zero. what annual rate of interest, compounded annually, was earned over the duration of this annuity?

Answer 1

Belongs in middle school

800*9 = 5000*(?)^9
1.44 = ?^9
root to the 9
? = 1.041

7200-5000 = 2200