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: $i=0.1225$