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This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivs 3.0 Unported License. math exams: Question FM 11/27/2011 11:25

Sunday, November 27, 2011

Question FM 11/27/2011 11:25

To accumulate 4000 at the end of 3n years, deposits of 49 are made at the end of each of the first n years and 98 at the end of each the next 2n years. The annual effective rate of interest is i. You are given $(1+i)^{n}=2$.
Determine i.

Ans: $i=0.1225$

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