Question: 3) (This is 1.2.7S from the text, which means it is also a question from a previous FM exam) David can receive on of the

3) (This is 1.2.7S from the text, which means it is

3) (This is 1.2.7S from the text, which means it is also a question from a previous FM exam) David can receive on of the following two payment streams: 1. 100 at time 0,200 at time n, and 300 at time 2n 2. 600 at time 10 At an annual effective interest rate i, the present values of the two streams are equal. Given with a 0.75941, determine i. (Remember v = 1/(1+1).)

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