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You deposit 100 into a savings account at time 0, which pays interest at a nominal rate of i, compounded semiannually. Your friend deposits 200
You deposit 100 into a savings account at time 0, which pays interest at a nominal rate of i, compounded semiannually. Your friend deposits 200 into a different savings account at time 0, which pays simple interest at an annual rate of i.
You and your friend earn the same amount of interest during the last 6 months of the 10th year. Calculate i.
(A) 8% (B) 7.4% (C) 6.8% (D) 6% (E) 5.2%
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