4-72. Find the value of the unknown quantity, Po, that establishes equivalence in the cash-flow diagram below. Suppose i = 20% per year. Use an annuity factor and a uniform gradient factor in your solution. (4.10) $1,400 1 $1,100 2 $800 $500 $500 $500 $500 $500 324 5 6 7 8 End of Year $2,000 10

College Algebra
7th Edition
ISBN:9781305115545
Author:James Stewart, Lothar Redlin, Saleem Watson
Publisher:James Stewart, Lothar Redlin, Saleem Watson
Chapter8: Sequences And Series
Section8.4: Mathematics Of Finance
Problem 2E
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4-72. Find the value of the unknown quantity, Po, that
establishes equivalence in the cash-flow diagram below.
Suppose i = 20% per year. Use an annuity factor and a
uniform gradient factor in your solution. (4.10)
$1,400
PO = ?
1
$1,100
2
$800
$500 $500 $500 $500 $500
11
5 6
End of Year
3 24
789
$2,000
10
Transcribed Image Text:4-72. Find the value of the unknown quantity, Po, that establishes equivalence in the cash-flow diagram below. Suppose i = 20% per year. Use an annuity factor and a uniform gradient factor in your solution. (4.10) $1,400 PO = ? 1 $1,100 2 $800 $500 $500 $500 $500 $500 11 5 6 End of Year 3 24 789 $2,000 10
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