Beckman Technologies, a relatively small manufacturer of precision laboratory equipment, borrowed $2 million to renovate one of its testing labs. In an effort to pay off the loan quickly, the company made four payments in years 1 through 4, with each payment being twice as large as the preceding one. At an interest rate of 10% per year, what was the size of the fi rst payment?

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Beckman Technologies, a relatively small manufacturer of precision laboratory equipment, borrowed $2 million to renovate one of its testing labs. In an effort to pay off the loan quickly, the company made four payments in years 1 through 4, with each payment being twice as large as the preceding one. At an interest rate of 10% per year, what was the size of the fi rst payment?
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