Question

How do you solve for Find the value of P for which the inflows will equal...

How do you solve for

Find the value of P for which the inflows will equal the outflows. Find the effective rate first.

Rate 21% 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
Right Answer:

$2,856
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