Homework Answers
i = ? , n = 5 years
PV = $ 30000
pmt = $ 5000 and salvage value = $ 8000
30000 = 5000/(1 + i) + 5000/(1 + i)2 + .... + 5000/(1 + i)5 + 8000/(1 + i)5
i = 2.8% (option a is correct)
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