Consider the accompanying cash-flow diagram. (See Figure P4-49.)
a. If P = $1, 000, A = $200, and i% = 12% per year, then N=?
b. If P = $1, 000, A = $200, and N=10 years, then i =?
c. If A = $200, i% = 12% per year, and N = 5 years, then P = ?
d. If P = $1,000, i% = 12% per year, and N = 5 years, then A = ?

Figure P4-49:

Transcribed Image Text:

Alyear 3 N-1 2 2 3 End of Year 5 4 Interest = i%/year