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Savings Eric deposits $100 into a savings account at time 0, which pays interest at a nominal rate of i, compounded semiannually. Mike deposits $200 into a different savings account at time 0, which pays simple interest, at an annual rate of i. Eric and Mike earn the same amount of interest during the last 6 months of the 8th year. Calculate i. Choose one of the following. Source: Society of Actuaries.
- (a) 9.06%
- (b) 9.26%
- (c) 9.46%
- (d) 9.66%
- (e) 9.86%
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Chapter 5 Solutions
Finite Mathematics and Calculus with Applications (10th Edition)
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