A person promises to pay annually simple annual interest i, on a loan where a constant fraction f, of the outstanding principal is paid back each year until the final year when both the interest and remaining principal are paid. For the cash flow table shown, find the values of i and f. Solve mathematically.
End of year | Receipt/Disbursement |
0 | $10,000 |
1 | –5,800 |
2 | –2,900 |
3 | –1,450 |
4 | –725 |
5 | –675 |
We need at least 10 more requests to produce the solution.
0 / 10 have requested this problem solution
The more requests, the faster the answer.