Homework Answers
|
(P/A, i, N) |
Uniform Series Present Worth Factor |
|
|
(P/F, i, N) |
Single payment present worth factor |
|
Hence, the equation changes to:
We will have to now resort to excel.
I
have chosen a cell (A7) in my excel and entered a value say i =
0.1. Using this cell i typed the formula representing the right
hand side of the above equation, in the cell B7. The formula types
is shown in the adjacent cell in blue color.
I then proceeded to do a "Goal Seek". Please see the above snapshot.
The result of the Goal seek is shown below:
The
value in A7 = i = 0.0656321 = 6.56%
Add Answer to:
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