Consider the following cash flow: Year Cash Flow 0...........................-$400 1.................................0 2...........................+200 3...........................+150 4...........................+100 5.............................+50 Write one equation,

Question:

Consider the following cash flow:
Year Cash Flow
0...........................-$400
1.................................0
2...........................+200
3...........................+150
4...........................+100
5.............................+50
Write one equation, with i as the only unknown, for the cash flow. In the equation you are not to use more than two single payment factors. (You may use as many other factors as you wish.) Then solve your equation for i.
Compound Interest
Compound interest (or compounding interest) is interest calculated on the initial principal, which also includes all of the accumulated interest from previous periods on a deposit or loan. Thought to have originated in 17th century Italy, compound...