$1,000 is deposited every 6 months into an account earning interest at a rate of j₂ and you are given that the accumulated value of the account is $11,820 just after the tenth deposit is made.

Using linear interpolation, what rate of interest j₂ is the account earning?

You are given the following annuity factors: s _10|0.03 = 11.4639, s _10|0.035 = 11.7314, s _10|0.04 = 12.0061

A.

7.354%

B.

7.323%

C.

7.326%

D.

7.358%

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