PROBLEM 4 The annual amount for years 1 through 8 of the cas

PROBLEM 4: The annual amount for years 1 through 8 of the cash flows shown is $30,000. What is the amount of the cash flow labeled x in year 3, if i= 10% per year? 0 1 6 2000 2x 3400

Solution

X=2200+ 2200 multiplied by 10%=2200+220=2420. Note here word annual has been used not overall otherwise we could have used algebraic sums