Problem 6

Please examine the provided cash flow table

Year - Cash Flow:

0-35000

1-Q

2-3Q

3-2Q

4-2.5Q

5-Q

6-2Q

7-4Q

The interest rate is 4.9%Use the goal seek function to answer these questions.

6a. What is the value of Q at 4.9%

6b. If Q is $3500 what NEW rate do we need?