Mrs. Williams finds that she has two options for investing 3200.02 for 15 years.
#1: deposit 3200.10 into a fund earning a nominal interest rate of discount d^(4) payable quarterly.
# 2: Purchase annuity-immediate with 15 level annual payments, the annuity payments computed using an annual effective rate of 7%, and then when she gets an annuity payment, to immediately invest it into a fund earning an annual effect interest rate of 5%.

Mrs. Williams calculates that the second option produces an accumulated value that is $1500 more than the accumulated value yielded by option 1. calculate d

Question

Mrs. Williams finds that she has two options for investing 3200.02 for 15 years.
#1: deposit 3200.10 into a fund earning a nominal interest rate of discount d^(4) payable quarterly.
# 2: Purchase annuity-immediate with 15 level annual payments, the annuity payments computed using an annual effective rate of 7%, and then when she gets an annuity payment, to immediately invest it into a fund earning an annual effect interest rate of 5%.

Mrs. Williams calculates that the second option produces an accumulated value that is $1500 more than the accumulated value yielded by option 1. calculate d