Question
A deposit of 800 is made into a fund at time 0. The fund pays interest...
A deposit of 800 is made into a fund at time 0. The fund pays interest at a nominal rate of discount, k compounded semiannually for the first three years.
After that, interest is credited at a force of interest, δt = 1/(t+1)
At the end of five years, the accumulated value of the fund is 1,500. Calculate k.
A. 7.3%
B. 7.6%
C. 7.9%
D. 8.2%
E. 8.5%
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