Math Problem Statement

olve for the unknown quantity in Parts​ (a) through​ (d) that makes the equivalent value of cash outflows equal to the equivalent value of the cash​ inflow, F. a. If Fequals​$9 comma 500​, Gequals​$550​, and Nequals6​, then iequals​? b. If Fequals​$9 comma 500​, Gequals​$550​, and iequals5​% per​ period, then Nequals​? c. If Gequals​$1 comma 000​, Nequals12​, and iequals10​% per​ period, then Fequals​? d. If Fequals​$7 comma 000​, Nequals6​, and iequals10​% per​ period, then Gequals​?

Solution

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Math Problem Analysis

Mathematical Concepts

Annuities
Interest Rate Calculation
Future Value of Annuity
Algebraic Rearrangement

Formulas

Future Value of an Annuity: F = G * ((1 + i)^N - 1) / i
Solving for i: Iterative or numerical methods needed
Solving for N: N = log((F * i / G) + 1) / log(1 + i)
Solving for G: G = F * i / ((1 + i)^N - 1)

Theorems

Future Value Annuity Theorem
Logarithmic Equations for Time Periods

Suitable Grade Level

Undergraduate Finance, Advanced High School Math