Question
Sierra establishes a line of credit with a deposit of $1000. She: - Withdraws $500 dollars after two years. - Deposits $1700 three years after
Sierra establishes a line of credit with a deposit of $1000. She:
- Withdraws $500 dollars after two years.
- Deposits $1700 three years after that.
- Withdraws $650 two years after that.
- Deposits $500 three years later.
Fifteen years after establishing the line of credit, she makes a withdrawal of $4500 that closes the account. Let be the effective rate of interest. Set up an equation of value for this problem that would be used to solve for the possible effective rates of interest. Make the substitution =1+ to get an equation in the variable . Fill in the missing portion the equation: (BLANK) = 4500.
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