ind the value of P for which the inflows will equal the out ffective rate first. Rate ear Outflows I -P -2P -4P -8P -16P 18% Inflows $24,000 $30,000 $36,000 pycd

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Find the value of P for which the inflows will equal the outflows. Find the
effective rate first.
Rate
Year Outflows
0
1
2
3
4
5
678
9
10
-P
-2P
-4P
-8P
-16P
$1,530
$2,545
$3,269
$3,490
18% pycd
Inflows
$24,000
$30,000
$36,000
$42,000
$48,000
$54,000
Transcribed Image Text:Find the value of P for which the inflows will equal the outflows. Find the effective rate first. Rate Year Outflows 0 1 2 3 4 5 678 9 10 -P -2P -4P -8P -16P $1,530 $2,545 $3,269 $3,490 18% pycd Inflows $24,000 $30,000 $36,000 $42,000 $48,000 $54,000
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