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Exercise


ABy Admin
Nov 17'23

Answer

Solution: A

Equating present values:

[[math]] \begin{array}{l}{{100+200\nu^{a}+300\nu^{2a}=600\nu^{10}}}\\ {{100+200(0.76)+300(0.76)^{2}=600\nu^{10}}}\\ {{0.7086=\sqrt{0.7}}}\\ {{1.03501=1+i}}\\ {{i=3.5\%.}}\end{array} [[/math]]

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