Understanding Business
Understanding Business
12th Edition
ISBN: 9781259929434
Author: William Nickels
Publisher: McGraw-Hill Education
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Consider the following set of cash flow diagrams.
012
3
45678
3
4
5
6
100
200
400 400 400 400 400
500
X
The interest rate is 10% compounded annually. Find the value of X that makes the two diagrams equivalent.
X
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Transcribed Image Text:Consider the following set of cash flow diagrams. 012 3 45678 3 4 5 6 100 200 400 400 400 400 400 500 X The interest rate is 10% compounded annually. Find the value of X that makes the two diagrams equivalent. X
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