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Find the value of P for which the inflows will equal the outflows. Find the effective rate first. Rate 18% p y c d Year
Find the value of P for which the inflows will equal the outflows. Find the effective rate first.
Rate | 18% | p y c d | |
Year | Outflows | Inflows | |
0 | -P | ||
1 | -2P | ||
2 | -4P | ||
3 | -8P | ||
4 | -16P | ||
5 | $24,000 | ||
6 | $30,000 | ||
7 | $36,000 | ||
8 | $42,000 | ||
9 | $48,000 | ||
10 | $54,000 |
A $1,530 | ||
B $2,545 | ||
C $3,269 | ||
D $3,490 |
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