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  • 26-05-2023
  • Business
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At time 0, 1000 is deposited into fund A and also into fund B. Fund A accumulates at a force of interest of

St = 3/(1 + t)³

Fund B accumulates at an annual effective interest rate i. At the end of 5 years, the accumulated value of fund A is equal to the accumulated value of fund B. Calculate i.

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