GARP.FRM.PQ.P1 Solving R

[PortoMarco79]

Can someone help me solve for R here? The book gives a solution of 4.953.

Thanks

2.5e^-0.04x0.5 + 2.5e^-0.045x1 + 2.5e^-0.048x1.5 + 102.5e^-2r = 100

THanks

 

[Matthew Graves]

Just a simple rearrangement will give you r:

Therefore:

 

[PortoMarco79]

Got it.

Thanks @Matthew Graves