Question

Sergon has $5000 to invest for six months. The rates offered on three-month and six-month
term deposits at his bank are 5.5% and 5.8%, respectively. He is trying to choose between
the six-month term deposit and two consecutive three-month term deposits. What would
the simple interest rate on three-month term deposits have to be, three months from now,
for Sergon to end up in the same financial position with either alternative? Assume that he
would place both the principal and the interest from the first three-month term deposit in
the second three-month term deposit.