Revision as of 11:42, 18 November 2023 by Admin (Created page with "'''Solution: E''' Let j be the semi-annual interest rate. Then, <math display = "block"> \begin{array}{c} {{475,000 = 300 + 300a_{\overline{\infty}|j} + (1+j)^{-1}200(Ia)_{\overline{\infty}|j} = 300 + 300/j + 300/j^2}} \\ {{474,700j^{2}-300j-200=0}}\\ {{j=\frac{300+\sqrt{300^{2}-4(474,700)(-200)}}{2(474, 700)} = 0.02084}}\\ {{i=(1+j)^{2}-1=0.04212 = 4.21\%}}\end{array} </math> {{soacopyright | 2023 }}")
Exercise
ABy Admin
Nov 18'23
Answer
Solution: E
Let j be the semi-annual interest rate. Then,
[[math]]
\begin{array}{c}
{{475,000 = 300 + 300a_{\overline{\infty}|j} + (1+j)^{-1}200(Ia)_{\overline{\infty}|j} = 300 + 300/j + 300/j^2}} \\
{{474,700j^{2}-300j-200=0}}\\ {{j=\frac{300+\sqrt{300^{2}-4(474,700)(-200)}}{2(474, 700)} = 0.02084}}\\ {{i=(1+j)^{2}-1=0.04212 = 4.21\%}}\end{array}
[[/math]]
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