Here is the question:
10000 can be invested under two options:
Option 1: Deposit the 10000 into a fund earning an effective annual rate of i
Option 2: Purchase an annuity-immediate with 24 level annual payments at an effective annual rate of 10%. The payments are deposited into a fund earning an effective annual rate of 5%.
Both options produce the same accumulated value at the end of 24 years. Calculate i.
I have been working on this question for hours and still cannot get the right answer, which is i = 0.0689. Any help would be greatly appreciated.