Molly establishes a line of credit with a deposit of 1000 dollars. Two years later, she withdraws 450 dollars. Three years after that, she deposits 1500 dollars. Two years after that, she withdraws 600 dollars. Three years after that, she deposits 900 dollars. Fifteen years after establishing the line of credit, she makes a withdrawal of 4500 dollars that closes the account. Let ii be the effective rate of interest. Set up an equation of value for this problem that would be used to solve for the possible effective rates of interest. Make the substitution x=1+ix=1+i to get an equation in the variable xx. Fill in the missing portion of this equation.

Answer rating: 100% (QA)

To set up an equation of value for this problem we need to consider the deposits and withdrawals mad... View the full answer